Why Marketing???

© Balakrishnan 2012 TBS 904

Lecture Elements

Fundamental Concepts

Marketing Boundaries and inputs into Strategy

Marketing Trends

Case Analysis

Participation and Pre-work!

Awareness of the Marketing World –

Collaborate!!!

Feel free to disagree – we can debate issues!

Theory is not rigid and neither is the world!

Marketing – Basics, Importance

and Trends (Chapter 1 & 2)

Marketing Definition:

What its role

Functions involved

Process

What is Marketed? • Goods

• Services

• Events

• Experiences

• Persons

•Places

• Properties

• Organizations

• Information

• Ideas

Important Types of Demand

Hidden demand – exists but customer may not be aware of

it

Latent – exists, customer is aware but does not know it

can be fulfilled

Negative demand – dislikes the product and may pay to

avoid it

[non-existent (awareness may be the key!); declining

(need to find out why?); irregular (how can you exploit

seasonality, is it a fad?); full (can it increase or is it

mature?); overfull (are you creating demand for

competition?); unwholesome (legal/future implications???)

Figure 1.2

A Simple Marketing System

Key Markets [ARE THERE ANY OTHER WAYS WE CAN DEFINE

THEM?]

Consumer markets

Business markets

Global markets Nonprofit/Government markets

Core Concept: Types of Needs

Stated

Real

Unstated

Delight

Secret

Why do you Brush You Teeth?

12 trends (compare this with p. 34) 1. Digital Primacy –propositions are anchored around mobile and online

experiences, See Gang of Girls, Unilever

2. Global Niching - Check Coca Cola in Asia, Superdry in Europe and

mobile hybrids like Zipcars.

3. Fractal Networks - instead of hundreds of Facebook friends, we step

back into more closed communities of real friends - Learn from Mumsnet to

Murcuelagos, and Nike too

4. Smart Screens – apps and networks, smartphones and tablets Look at

Amazon, Flipboard and Groupon

5. Participation Brands – brands reflect their communities not their

producers–Get involved at Current TV, or Starbucks or Threadless.

6. Social Voice – positive brands can become the voice of consumers,

Express yourself with Diesel and Patagonia, Google and maybe even

Baidu.

7. Subscription Models – from automobiles to cloud computing ownership is replaced by leasing, Buy things differently at Abel & Kane, Panties by Post, Spotify.

8. Urban Majority – the majority of the world’s population now live in cities, yet city-centre retailing and facilities are premium focused. The biggest opportunity is to create stores, entertainment venues, and leisure facilities for the less affluent urbanites. Rethink like Aldi/Traders Joe and Honda, Primark and Pepsi.

9. Alternative Money – from Facebook likes to Tweet-to-buy, from gaming credits to green tokens, cash is becoming less important, Try Drench, Greenpoints and Zynga's social games.

10. Fringe Fashion – nobody is average, and as we personalise our

homepages, we increasingly turn our back on mainstream brands and

fashions too. To express yourself, you want something more edgy,

unusual, different, quirky, from unknown designers or unusual places.

Who will be the next Camper, Desigual, or Ed Hardy?

11. FMRG – retail brands are more trusted and desirable than product

brands. Start shopping at Boots, Carrefour, and Target with Starck

12. Experiential Healthcare - as people live longer, drugs are more

accessible, and wellbeing becomes the craze, Go to WebMD, UrbanZen

or PatientsLikeMe

Company Orientations (p. 45

Assess your company)

Production

Product

Selling

Marketing

Product Orientation vs.

Market Orientation

Company Product Market

Missouri-Pacific

Railroad

We run a railroad We are a people-

and-goods mover

Xerox We make copying

equipment

We improve office

productivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain

people

Holistic Marketing

Types of

Corporate Social Initiatives

Corporate social marketing

Cause marketing

Cause-related marketing

Corporate philanthropy

Corporate community involvement

Socially responsible business practices

Creating Strategy Plans (Chap 2)

Characteristics of Core Competencies

A source of competitive advantage

Applications in a wide variety of markets

Difficult to imitate

Maximizing Core Competencies

(Re)define the business concept

(Re)shaping the business scope

(Re)positioning the company’s brand identity

Questions to Address in

Holistic Marketing What value opportunities are available?

How can we create new value offerings

efficiently?

How can we delivery the new offerings

efficiently?

Figure 2.1 The Strategic Planning,

Implementation, and

Control Processes

Figure 2.3 The Business Unit

Strategic Planning Process

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2011 Pearson

Education,

Inc. Publishin

g as Prentice

Hall

2-19

Figure 2.2 The Strategic Planning

Gap

Copyright © 2011 Pearson Education,

Inc. Publishing as Prentice Hall

2-20

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Market Opportunity Analysis

(MOA)

Can the benefits involved in the opportunity be articulated

convincingly to a defined target market?

Can the target market be located and reached with cost-

effective media and trade channels?

Does the company possess or have access to the critical

capabilities and resources needed to deliver the customer

benefits?

Market Opportunity Analysis

(MOA) Can the company deliver the benefits better than any actual

or potential competitors?

Will the financial rate of return meet or exceed the company’s

required threshold for investment?

Figure 2.4

Opportunity and Threat Matrices

Goal Formulation and MBO Unit’s objectives must be hierarchical

Objectives should be quantitative

Goals should be realistic

Objectives must be consistent

Porter’s Generic Strategies

Overall cost leadership

Differentiation

Focus

Categories of Marketing Alliances Product or service alliance

Promotional alliance

Logistics alliances

Pricing collaborations

McKinsey’s Elements of Success

Strategy

Structure

Systems Style

Shared values

Staff

Skills

Marketing Plan Contents Executive summary

Table of contents

Situation analysis

Marketing strategy

Financial projections

Implementation controls

Evaluating a Marketing Plan

Is the plan simple?

Is the plan specific?

Is the plan realistic?

Is the plan complete?