Professional Documents
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Australia
Adelaide
What is marketing?
Marketing Myopia
by Ted Levitt
Evolution of Marketing
Societal Marketing Orientation The Marketing Orientation
MO:
MO:
Movie producer
Customer Satisfaction
Marketing Management
Customer Satisfaction
Everyone is different
Slide 13
Slide 13
Marketing Strategy
Environment
MARKETING MIX
Product
Price
Place
Promotion
Olympus mini
Displayed in lifestyle stands
$US349
Marketing Plan
is a written statement of a marketing strategy and the time-related details for carrying out the strategy. Outlines in detail:
What marketing mix is offered. To what target market. For how long. What resources (costs) are needed and at what rate. What results are expected. What control procedures will be used.
+
Time related details + control procedures
Marketing plan
+
Other marketing plans
The Professional
Party People
Analysis
Slide 19
Thursday Feb. 2nd Introductions and Introduction to Marketing Management Morning Break Discussion of Marketing Myopia Article and Discussion of Marketing Planning, Implementation and Control Lunch Marketing Analysis Toolkit: Analyzing the Context, Company and Collaborators of the Apple Case Study
Friday Feb. 3rd Market Segmentation, Targeting and Positioning: The Fashion Channel Case Study Morning Break Market Research and Consumer Behavior: Analyzing Customers and Conducing Research Lunch Product and Brand Strategy, and Product Innovation: The Samsung Case Study
Saturday Feb. 4th Pricing Strategy: Virgin Mobile USA Case Study Morning Break Integrated Marketing Communications Strategy: Cunard
Afternoon Break Marketing Analysis Toolkit: Analyzing Competitors and conducting a SWOT Analysis on the Apple Case Study
DUE DATE
WEIGHTING 10%
20%
20% 50%
Marketing Strategy
Environment
MARKETING MIX
Product
Price
Place
Promotion
Competitive Strategies
Lower Cost Differentiation Broad Target
Differentiation = be unique along some dimensions that are valued by buyers Differentiation Focus = be unique in a segment or group of segments
Narrow Target
Competitive Advantages
Financial strength
Production flexibility
Channel relationships
Distribution dominance Patents Technical capability Loyal customer base
(Coca-Cola)
(GlaxoSmithKline)
(Boeing)
(Harley Davidson)
Competitor Analysis
Purpose To predict future competitive moves To identify areas of competitive vulnerability To predict competitors reactions to own strategy
Framework for competitor analysis:
Companys Current or Planned Strategy Competitor 1s Strengths and Weaknesses Competitor 2s Strengths and Weaknesses
Target Market Product Place Promotion Price Competitive Barriers Likely Response
The Industry
Threat of substitute products
Jockeying for position among competitors
The Industry
Threat of su b stitute products Threat of New Entrants
Limited
The Industry
High
Low
Slide 36
External
Opportunities
Weaknesses
Threats
Understanding Markets
Segmentation: involves identifying and understanding the needs of particular groups of customers.
A market: is a group of potential customers with similar needs, who are willing to exchange something of value for various need-satisfying goods or services.
Bicycle Riders
Extreme Recreation
Travellers
Socialisers
Exercisers
Environmentalists
3. Segment is substantial
Segment is big enough to be profitable
Demographic
Age Gender Family size Income & Social Class Education
Psychographic
Lifestyle Interests & Opinions Personality Core Values
Competitive advantage = the marketing mix of a company is perceived by the target market as superior to those of its competitors
Needs Analysis
Functional Symbolic Emotional Social
Market Research
Secondary data
= information that has previously been collected or published Examples: data from SCAD, computer databases, internal reports, industry trade associations and the Internet
Primary data
= information specifically collected to solve a current problem Examples: surveys, experiments and observational studies
Qualitative Research
Seeks in-depth, open-ended responses - not yes or no answers Examples of qualitative methods
Personal in-depth interviews Focus groups Projective techniques Observation and ethnography
Can provide good ideas or hypotheses Responses may not be representative of the population
Quantitative Research
Seeks structured responses that can be summarised in numbers
e.g. percentages, averages or other statistics
Utilises sampling
= a fraction of the relevant population
Methods include
surveys observation experimentation
What is a product?
Levels of a Product
Augmented Product
Delivery & Credit Warranty
Actual Product
Product Support Quality level Brand name After-sales Service
Core Product
Features
Benefit
Packaging
Product Classes
Consumer Industrial
Raw Materials Manufactured materials and parts Capital items Supplies and Business Services
Product Lifecycle
Line Extension
New
Multibrands
New Brands
Evaluating Opportunities:
Product Portfolio Management (BCG Matrix)
Build Share: here the company can invest to increase market share Harvest: here the company reduces the amount of investment in order to maximise the short-term cash flows and profits from the SBU. Divest: the company can divest the SBU by phasing it out or selling it - in order to use the resources elsewhere Hold: here the company invests just enough to keep the SBU in its present position
Samsung Case
What product lines do they have? Use the BCG matrix/GE grid to determine strategies for both the Consumer Electronics and Appliances products and the Information Technology products What should they do with the issue of branding?
Gap 1
COMPANY
Product and service delivery Customer-driven product and service designs and standards
Gap 3
Gap 4
Which Gap?
Etisalat advertising emphasises Amazing TV + Supersonic Internet + High Quality Landline. Customers not living in the city find that, although they bought the highest Internet speed, they are still experiencing slow downloads and are dissatisfied.
Gap 4
Gap 1
COMPANY
Product and service delivery Customer-driven product and service designs and standards
Gap 3
Gap 4
Which Gap?
A restaurant manager understands that customers expect to be served within 20 minutes of ordering. They schedule 2 waiters during peak dining times, who cant provide that speed of service and customers become very dissatisfied with waiting for their meals.
Gap 2
Gap 1
COMPANY
Product and service delivery Customer-driven product and service designs and standards
Gap 3
Gap 4
Gap 1
Gap 1
COMPANY
Product and service delivery Customer-driven product and service designs and standards
Gap 3
Gap 4
Which Gap?
To make building a plastic Christmas tree easier for customers the producers have found that customers should start from the bottom and work upwards. Thus, they have included instructions to help customers with their construction. Many customers do not read the instructions and are dissatisfied with hitting their head on upper branches.
Gap 3
Distribution Strategy
Direct Distribution
Manufacturer Consumer
Indirect Distribution
Manufacturer Intermediary Consumer
It occurs when the producer uses intermediaries to reach consumers or end users
Manufacturer
Consumer
Manufacturer
Consumer
Manufacturer
Intermediary
Consumer
Manufacturer
Consumer
Marketing channel
A marketing channel consists of firms that have partnered for their common good with each member playing a specialized role.
Selling through only those intermediaries who will give the product special attention
Few
versus
Retails
Pricing Strategy
Value-based Pricing
Good-value pricing Value-added pricing
Price flexibility
Fixed-price policy Flexible-price policy
Market-Penetration Pricing
attempting to sell to the whole market at one low price
Market Skimming
Market-Penetration Pricing
Demand-Oriented Approaches
Loss Leader pricing Value-in-use pricing
On-line auctions
Psychological pricing
Demandbackward pricing
Tendering
offering a specific price for each possible job, rather than setting a price that applies for all customers
Negotiated price
a price that is arrived at after bargaining between the buyer and seller
Deceptive Pricing
Bait pricing
persuade
remind
Informing
Reminding
Emotion
Creative styles
Generic product style
Preemptive style
Point-of-Sale
Personal Selling
Direct Marketing
Sales Promotions
Public
Relations
Cunard Case
What are the promotion objectives Analyze the message strategy Analyze the creative strategy What is the promotional mix? Is the promotional mix well integrated? Would you add or remove any components of the marketing mix? Is the strategy push, pull or a mix of both What are the dangers of their strategy? What are the dangers of sales promotion? Should they use a family brand?