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Slide 1 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning
Slide 2 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1
Slide 3 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make?
Slide 4 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits.
Slide 5 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur
Slide 6 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty
Slide 7 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market?
Slide 8 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market?
Slide 9 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer
Slide 10 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing
Slide 11 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM)
Slide 12 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs
Slide 13 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses?
Slide 14 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength
Slide 15 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness
Slide 16 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats
Slide 17 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach)
Slide 18 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation.
Slide 19 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP
Slide 20 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income
Slide 21 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income
Slide 22 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program)
Slide 23 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps
Slide 24 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new
Slide 25 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D.
Slide 26 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships
Slide 27 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes
Slide 28 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly
Slide 29 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples
Slide 30 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement
Slide 31 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes
Slide 32 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy
Slide 33 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping
Slide 34 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center
Slide 35 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making
Slide 36 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making Two Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand If a brand is strong on one attribute and average on another, it will still dominate a brand that was average on all of its attributes
Slide 37 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making Two Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand If a brand is strong on one attribute and average on another, it will still dominate a brand that was average on all of its attributes This Book… Assumes global customers Assumes omnipresence of the Internet Gives fresh, fun examples Trains you to think like a marketer Defines terms as necessary Offers lists of factors to consider Gives “how to” guidance when feasible
Slide 38 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making Two Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand If a brand is strong on one attribute and average on another, it will still dominate a brand that was average on all of its attributes This Book… Assumes global customers Assumes omnipresence of the Internet Gives fresh, fun examples Trains you to think like a marketer Defines terms as necessary Offers lists of factors to consider Gives “how to” guidance when feasible This Book… Each chapter opens with the Marketing Framework to maintain a focus on the big picture while also highlighting key concepts and tools about to be covered.
Slide 39 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making Two Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand If a brand is strong on one attribute and average on another, it will still dominate a brand that was average on all of its attributes This Book… Assumes global customers Assumes omnipresence of the Internet Gives fresh, fun examples Trains you to think like a marketer Defines terms as necessary Offers lists of factors to consider Gives “how to” guidance when feasible This Book… Each chapter opens with the Marketing Framework to maintain a focus on the big picture while also highlighting key concepts and tools about to be covered. This Book… Begins each chapter with coverage of “What” is the topic and “Why” it should matter to you Every chapter then addresses the question of “How do I do this successfully?”
Slide 40 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making Two Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand If a brand is strong on one attribute and average on another, it will still dominate a brand that was average on all of its attributes This Book… Assumes global customers Assumes omnipresence of the Internet Gives fresh, fun examples Trains you to think like a marketer Defines terms as necessary Offers lists of factors to consider Gives “how to” guidance when feasible This Book… Each chapter opens with the Marketing Framework to maintain a focus on the big picture while also highlighting key concepts and tools about to be covered. This Book… Begins each chapter with coverage of “What” is the topic and “Why” it should matter to you Every chapter then addresses the question of “How do I do this successfully?” Book Layout
Slide 41 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making Two Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand If a brand is strong on one attribute and average on another, it will still dominate a brand that was average on all of its attributes This Book… Assumes global customers Assumes omnipresence of the Internet Gives fresh, fun examples Trains you to think like a marketer Defines terms as necessary Offers lists of factors to consider Gives “how to” guidance when feasible This Book… Each chapter opens with the Marketing Framework to maintain a focus on the big picture while also highlighting key concepts and tools about to be covered. This Book… Begins each chapter with coverage of “What” is the topic and “Why” it should matter to you Every chapter then addresses the question of “How do I do this successfully?” Book Layout Study Question 1 Marketers try to figure out what _____ want and then they try to figure out how to provide it and make money doing so. a. business owners b. advertisers c. customers d. companies
Slide 42 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making Two Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand If a brand is strong on one attribute and average on another, it will still dominate a brand that was average on all of its attributes This Book… Assumes global customers Assumes omnipresence of the Internet Gives fresh, fun examples Trains you to think like a marketer Defines terms as necessary Offers lists of factors to consider Gives “how to” guidance when feasible This Book… Each chapter opens with the Marketing Framework to maintain a focus on the big picture while also highlighting key concepts and tools about to be covered. This Book… Begins each chapter with coverage of “What” is the topic and “Why” it should matter to you Every chapter then addresses the question of “How do I do this successfully?” Book Layout Study Question 1 Marketers try to figure out what _____ want and then they try to figure out how to provide it and make money doing so. a. business owners b. advertisers c. customers d. companies Study Question 2 Marketers help/work with all of the following EXCEPT a. athletes. b. department stores. c. hotels. d. All can be helped by marketers.
Slide 43 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making Two Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand If a brand is strong on one attribute and average on another, it will still dominate a brand that was average on all of its attributes This Book… Assumes global customers Assumes omnipresence of the Internet Gives fresh, fun examples Trains you to think like a marketer Defines terms as necessary Offers lists of factors to consider Gives “how to” guidance when feasible This Book… Each chapter opens with the Marketing Framework to maintain a focus on the big picture while also highlighting key concepts and tools about to be covered. This Book… Begins each chapter with coverage of “What” is the topic and “Why” it should matter to you Every chapter then addresses the question of “How do I do this successfully?” Book Layout Study Question 1 Marketers try to figure out what _____ want and then they try to figure out how to provide it and make money doing so. a. business owners b. advertisers c. customers d. companies Study Question 2 Marketers help/work with all of the following EXCEPT a. athletes. b. department stores. c. hotels. d. All can be helped by marketers. Study Question 3 Which of the following is NOT part of the 5Cs? a. context b. corporation c. customer d. competitors
Slide 44 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making Two Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand If a brand is strong on one attribute and average on another, it will still dominate a brand that was average on all of its attributes This Book… Assumes global customers Assumes omnipresence of the Internet Gives fresh, fun examples Trains you to think like a marketer Defines terms as necessary Offers lists of factors to consider Gives “how to” guidance when feasible This Book… Each chapter opens with the Marketing Framework to maintain a focus on the big picture while also highlighting key concepts and tools about to be covered. This Book… Begins each chapter with coverage of “What” is the topic and “Why” it should matter to you Every chapter then addresses the question of “How do I do this successfully?” Book Layout Study Question 1 Marketers try to figure out what _____ want and then they try to figure out how to provide it and make money doing so. a. business owners b. advertisers c. customers d. companies Study Question 2 Marketers help/work with all of the following EXCEPT a. athletes. b. department stores. c. hotels. d. All can be helped by marketers. Study Question 3 Which of the following is NOT part of the 5Cs? a. context b. corporation c. customer d. competitors Study Question 4 What order is correct for a situation analysis? a. 5Cs, 4Ps, STP b. 5Cs, STP, 4Ps c. 4Ps, 5Cs, STP d. STP, 5Cs, 4Ps
Slide 45 - Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning What is Marketing Chapter 1 Discussion Questions What is marketing? What can marketers market? What types of decisions do marketers make? Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. Why might an exchange NOT occur? The criteria needed for an exchange to occur: Must have something of value to exchange Need to be able to communicate Must be able to exchange (under 21 drinking) Must want to exchange At least 2 people needed for an exchange to occur What is the long term benefit to having satisfaction in an exchange? More profitable relationship Price insensitivity Inelastic demand Loyalty What Can We Market? What Can We Market? Orientations Product/Production Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer Selecting a Marketing-Oriented Strategy Is Target Marketing Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible (e.g., market share, revenue growth, income growth, ROIM) Marketing Framework Start with a Situational Analysis using the 5Cs Marketing Framework Customers (for a chimps’ NPO) Who are they? 20 to 40 years old What are they like? Animal lovers Do you want to draw different customers? Yes, other donors to NPO Company What are the strengths and weaknesses? Financial strength (Intel) Producing flexibility (DaimlerChrysler) Patents (IBM) Channel relationships (Kraft) Loyal customer base (Starbucks) Technical capability (3M) Examples of Company Strength The One Product Henry Ford made a wonderful car - the Model A- but that's all he made. General Motors decided that many people would like something different and were willing to pay for it. Fortunately, for Ford, he caught on quickly, but Ford almost went out of business with the thinking that one model fit everyone. Examples of Company Weakness Marketing Framework Context (for a chimps’ NPO) What is happening in the industry that might reshape the future business? Economy—concerned with economy and job security because donors might not give Politics—unknown—Democrats and Republicans Legal—NA Technological—move more giving online Societal—more green animal habitats Marketing Framework Collaborators (for a chimps’ NPO) Can address the customers’ needs while strengthening B2B partnerships? Good relations with supply chain—partner with pet food stores Good relations with distribution channel members (where place ads) —broaden beyond Full Standing Inserts (FSI) in two women’s magazines (e.g., periodicals with broader demographic reach) Marketing Framework Competitors (for a chimps’ NPO) Who are the competitors that must be consider? Any donation behavior; other animals, health agencies, museums, and the arts Competitors’ strengths—some have very good brand names What are their likely actions and reactions? More advertising, lobbying, solicitation. Marketing Framework Proceed to Strategic Marketing Planning with STP Marketing Framework Segmentation (Social network to sell travel vacation packages through testimonials and word-of-mouth—800,000 users) Customers aren’t all the same; they vary in their preferences, needs, and resources Current customers—low 20s Non-customer—40 and older Ideal customer—mid 20s with good disposable income Marketing Framework Targeting (sell travel vacation packages) Attracting some of those customers makes better sense than going after others Estimate size and profitability—buyers $1,350 one trip every other year Rank desirability of segments—25 to 35 better disposable income Marketing Framework Positioning (sell travel vacation packages) Communicate benefits clearly to intended customers High quality and high price or low quality and low prices?—high quality, prices are high but they’re good value Distribution mass or exclusive—to succeed, need some scale, which suggests wide availability/presence and mass promotion if cheap (e-referral program) Marketing Framework Advance to Marketing Tactics with the 4Ps Marketing Framework Product (small attachment for cell phone which allows user to project presentations onto wall in a small boardroom) Will customers want what the company is prepared to produce? Are we high-end or basic—high-end, innovative What are the primary features—innovative, convenient, light What are the brand associations—few because minimal awareness as yet Where are we in product life cycle—Brand new Marketing Framework Price (small attachment for cell phone) Will customers pay what we would like to charge? What are the customers’ price sensitivities—minimal, this is a cool business toy Offer occasional price discounts—No reason, benefits outweigh high price Beneficial to price differently from competitors—No competition yet, but keep price high to gain margin and spend on R&D. Marketing Framework Place (small attachment for cell phone) Where and how will customers purchase the market offering? Will we be extensive or selective—Extensive Use more pull or push—Pull Any conflicts to resolve—Still forging relationships Marketing Framework Promotion (small attachment for cell phone) What can we tell the customers or do for them to entice them to purchase? Our marketing communications (advertising) goals—Search engines, get into Sharper image How to measure ad effectiveness—Click-throughs How to budget across IMC—Aim for Business Week, Forbes Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly Consumer Product Classes Homogeneous Heterogeneous Shopping Products Specialty Products Convenience Products Impulse Emergency New Unsought Regularly Unsought Unsought Products Staples Problem Solving Continuum Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvement High involvement Business Product Classes – How They Are Defined Installations; important capital items Accessories; short lived capital items Raw Materials; unprocessed expense items Component Parts & Materials; expense items that become a part of the final product MRO Supplies Professional Services Business Product Classes Little Little None Little Straight Rebuy Organizational Buying Processes Characteristics Time required Multiple influences Review of suppliers Information needed Type of Process Much Much Much Much New-Task Buying Much Much Much Much New-Task Buying Medium Some Some Some Modified Rebuy Much Much Much Much New-Task Buying Little Little None Little Straight Rebuy Types of Shopping Multiple Influence and Roles in the Buying Center Gatekeepers Deciders (power to select & approve suppliers) Influencers (write technical specifications) Users Buyers (work with suppliers & arrange terms of sale) Buying Center Purchase Decision Making Two Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand If a brand is strong on one attribute and average on another, it will still dominate a brand that was average on all of its attributes This Book… Assumes global customers Assumes omnipresence of the Internet Gives fresh, fun examples Trains you to think like a marketer Defines terms as necessary Offers lists of factors to consider Gives “how to” guidance when feasible This Book… Each chapter opens with the Marketing Framework to maintain a focus on the big picture while also highlighting key concepts and tools about to be covered. This Book… Begins each chapter with coverage of “What” is the topic and “Why” it should matter to you Every chapter then addresses the question of “How do I do this successfully?” Book Layout Study Question 1 Marketers try to figure out what _____ want and then they try to figure out how to provide it and make money doing so. a. business owners b. advertisers c. customers d. companies Study Question 2 Marketers help/work with all of the following EXCEPT a. athletes. b. department stores. c. hotels. d. All can be helped by marketers. Study Question 3 Which of the following is NOT part of the 5Cs? a. context b. corporation c. customer d. competitors Study Question 4 What order is correct for a situation analysis? a. 5Cs, 4Ps, STP b. 5Cs, STP, 4Ps c. 4Ps, 5Cs, STP d. STP, 5Cs, 4Ps Study Question 5 B2B marketers have said there are three kinds of purchases - new buy, modified rebuy, and a. alternate rebuy. b. convenience rebuy. c. old buy. d. straight rebuy.