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2000 Prentice HallObjectivesCourse OrganizationTasks of MarketingMajor Concepts&Tools of MarketingMarketplace OrientationsMarketings Responses to New Challenges2000 Prentice HallDefining MarketingMarketing is a societal process by which individuals and groups obtain what they need and want through creating,offering,and freely exchanging products and services of value with others.-Philip Kotler(p.7)2000 Prentice HallSimple Marketing SystemIndustry(a collection of sellers)Market(a collection of Buyers)Goods/servicesMoneyCommunicationInformation2000 Prentice HallProduction ConceptProduct ConceptSelling ConceptMarketing ConceptConsumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality,performance,or innovative featuresConsumers will buy products only ifthe company aggressivelypromotes/sells these productsFocuses on needs/wants of target markets&delivering value better than competitorsCompany Orientations Towards the Marketplace2000 Prentice HallObjectivesDefine value&satisfaction-understand how to deliver themThe nature of high-performance businessesHow to attract&retain customersImproving customer profitabilityTotal quality management2000 Prentice HallResourcesOrganizationandaligning.High Performance BusinessProcessesBy improving critical business.Stake-holdersSet strategies to satisfy key.2000 Prentice HallSatisfied Customers:Are loyal longerBuy more(new products&upgrades)Spread favorable word-of-mouthAre more brand loyal(less price sensitive)Offer feedbackReduce transaction costs2000 Prentice HallInactive orex-customersCustomer DevelopmentPartnersAdvocatesClientsRepeatcustomersFirst-timecustomersSuspectsProspectsDisqualifiedprospects2000 Prentice HallCustomer/Product Profitability AnalysisP1HighlyprofitableproductP2ProfitableproductP3LosingproductP4Mixed-bagproductProducts+Highprofitcustomer+-Mixed-bagMixed-bagcustomercustomer+-LosingcustomerC1C2C3Customers2000 Prentice HallObjectivesCorporate and division strategic planingBusiness unit planningThe marketing processProduct level planningThe marketing plan2000 Prentice HallMarket-Oriented Strategic PlanningObjectivesSkillsResourcesOpportunities2000 Prentice HallMarket-Oriented Strategic PlanningObjectivesSkillsResourcesOpportunitiesProfitandGrowth2000 Prentice HallCorporate Headquarters PlanningDefine the corporate missionEstablish strategic business units(SBUs)Assign resources to SBUsPlan new business,downsize older businesses2000 Prentice HallThe Marketing Plan2000 Prentice HallObjectivesComponents of a marketing information systemCriteria of good marketing researchDecision support systems for marketing managementDemand measurement and forecast2000 Prentice HallA marketing information system(MIS)marketing information system(MIS)consists of people,equipment,and procedures to gather,sort,analyze,evaluate,and distribute needed,timely,and accurate information to marketing decision makers.A marketing intelligence systemmarketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment.2000 Prentice HallResearch ApproachesBehavioralFocus-groupSurveyExperimentalObservational2000 Prentice HallSecondary-Data SourcesInternal SourcesGovernment PublicationsPeriodicals and BooksCommercial DataOn-LineAssociationsBusiness Information2000 Prentice HallGood Marketing Research:Is scientificIs creativeUses multiple methodsRealizes the interdependence of models&dataAcknowledges the cost&value of informationMaintains“healthy”skepticismIs ethical2000 Prentice HallDemandMarketDemandCompanyDemand2000 Prentice HallEstimating Current DemandTotal Market PotentialArea Market PotentialIndustry SalesMarket Share2000 Prentice HallEstimating Future DemandSurvey of Buyers IntentionsComposite of Sales Force OpinionExpert OpinionPast Sales AnalysisMarket Test Method2000 Prentice HallObjectivesTracking&Identifying Opportunities in the MacroenvironmentDemographic,Economic,Natural,Technological,Political,&Cultural Developments2000 Prentice HallMacroenvironmental ForcesWorld trade enablersAsian economic powerRise of trade blocsInternational monetary crisesUse of barter&countertradeMove towards market economies“Global”lifestyles2000 Prentice HallMacroenvironmental ForcesOpening of“new”marketsEmerging transnational firmsCross-border strategic alliancesRegional ethnic&religious conflictGlobal branding2000 Prentice HallDemographic EnvironmentWorldwide Population GrowthPopulation Age MixEthnic MarketsHousehold PatternsEducational GroupsGeographical Shifts in PopulationShift from Mass Market to Micromarkets2000 Prentice HallEconomic EnvironmentIncome DistributionSubsistence economiesRaw-material-exporting economiesIndustrializing economiesIndustrial economiesSavings,Debt,&Credit Availability2000 Prentice HallNaturalEnvironment Higher PollutionLevelsIncreased Costsof EnergyShortage of Raw MaterialsChanging Roleof Government2000 Prentice HallAccelerating Paceof ChangeUnlimited Opportunitiesfor InnovationIncreasedRegulationIssues in the TechnologicalEnvironmentVaryingR&D Budgets2000 Prentice HallPolitical-LegalEnvironmentIncreasedLegislationSpecial-InterestGroups2000 Prentice HallSocial/Cultural EnvironmentOfOfOrganizationsOrganizationsOfOfNatureNatureOfOfOneselfOneselfOfOfSocietySocietyOfOfthe Universethe UniverseOfOfOthersOthersViewsThat ExpressValues2000 Prentice HallSocial/Cultural Environment2000 Prentice HallObjectivesInfluences on Buying BehaviorBuyer Decision Making2000 Prentice HallSimple Response ModelStimulusOrganismResponse2000 Prentice HallCultureCultural FactorsSubcultureSocial ClassBuyer2000 Prentice HallSocial FactorsReferenceGroupsRoles&StatusesFamily2000 Prentice HallInfluences on Consumer BehaviorPersonal InfluencesAge and Family Life Cycle StageLifestyleOccupation&Economic CircumstancesPersonality&Self-Concept2000 Prentice HallPsychological FactorsPerceptionLearningBeliefs&AttitudesMotivation2000 Prentice HallFour Types of Buying BehaviorComplexBuyingBehaviorDissonance-Reducing BuyingBehaviorVariety-SeekingBehaviorHabitualBuyingBehaviorSignificantdifferencesbetweenbrandsFewdifferencesbetweenbrandsHighInvolvementLowInvolvement2000 Prentice HallTotalSetDecision Making SetsAware-nessSetConsid-erationSetChoiceSetDecision2000 Prentice HallObjectivesHow Business&Consumer Markets DifferOrganizational Buying SituationsParticipants in the Business Buying ProcessMajor Influences on Organizational BuyersBusiness Buyer Decision MakingInstitutional&Government Buying2000 Prentice HallOrganizational FactorsPurchasing-DepartmentUpgradingCross-FunctionalRolesCentralizedPurchasingDecentralized Purchasing of SmallTicket ItemsInternetPurchasingLong-TermContractsPurchasing-PerformanceEvaluation&Pro.BuyersLeanProduction2000 Prentice HallProblem RecognitionGeneral Need DescriptionProduct SpecificationSupplier SearchProposal SolicitationSupplier SelectionOrder Routine SpecificationPerformance ReviewPostPurchasePurchaseInfoSearch/EvalNeedNeedRecognitionRecognition2000 Prentice HallInstitutional MarketsCaptive PatronsCaptive PatronsLow BudgetsLow Budgets2000 Prentice HallGovernment MarketsDomestic SuppliersOpen BidsCost MinimizationPublic ReviewPaperwork2000 Prentice HallObjectivesIdentifying CompetitorsEvaluating CompetitorsCompetitive Intelligence SystemsCompetitive StrategiesCustomer vs.Competitor Orientation2000 Prentice HallIndustry CompetitionNumber of Sellers-Degree of DifferentiationEntry,Mobility,Exit barriersCost StructureDegree of Vertical IntegrationDegree of Globalization2000 Prentice HallAnalyzing CompetitorsCompetitorCompetitorActionsActionsObjectivesObjectivesStrengths&Strengths&WeaknessesWeaknessesReactionReactionPatternsPatternsStrategiesStrategies2000 Prentice HallCompetitors Expansion PlansMarketsProductsIndividualUsersCommercial&IndustrialEducationalPersonalComputersHardwareAccessoriesSoftwareDell2000 Prentice HallHypothetical Market Structure&StrategiesMarketleaderMarketchallengerMarketfollowerExpand MarketDefend Market ShareExpand Market ShareAttack leaderStatus quoImitateMarketnicherSpecial-ize2000 Prentice HallDefense StrategiesAttackerAttacker(3)(3)PreemptivePreemptivedefensedefense(4)(4)Counter-Counter-offensiveoffensivedefensedefenseDefender(1)(1)PositionPositiondefensedefense(5)Mobiledefense(2)(2)Flank defenseFlank defense(6)(6)ContractionContractiondefensedefense2000 Prentice HallAttack StrategiesAttackerDefender(3)Encirclement attack(4)Bypass attack(2)Flank attack(5)Guerilla attack(1)Frontal attack2000 Prentice HallSpecific Attack StrategiesPrice-discountPrice-discountCheaper goodsCheaper goodsPrestige goodsPrestige goodsProduct proliferationProduct proliferationProduct innovationProduct innovationImproved servicesImproved servicesDistribution innovationDistribution innovationManufacturing cost reductionManufacturing cost reductionIntensive advertising promotionIntensive advertising promotion2000 Prentice Hall“Nichemanship”End-user specialistEnd-user specialistVertical-level specialistVertical-level specialistCustomer-size specialistCustomer-size specialistSpecific-customer specialistSpecific-customer specialistGeographic specialistGeographic specialistProduct or product-line specialistProduct or product-line specialistProduct-feature specialistProduct-feature specialistJob-shop specialistJob-shop specialistQuality-price specialistQuality-price specialistService specialistService specialistChannel specialistChannel specialist2000 Prentice HallBalanceCompetitionCustomer+Fighter orientation+Alert+Exploit weaknesses-Reactive+ID opportunities+Long-run profit+Emerging needs&groups2000 Prentice HallObjectivesIdentifying Market SegmentsChoosing Target Markets2000 Prentice HallMarket-Segmentation ProcedureSurveyMotivationsAttitudesBehaviorAnalysisFactorsClustersProfiling2000 Prentice HallBases for Segmenting Consumer MarketsOccasions,Benefits,Uses,or AttitudesBehavioralGeographicRegion,City or MetroSize,Density,ClimateDemographicAge,Gender,Family size and Life cycle,Race,Occupation,or Income.Lifestyle or PersonalityPsychographic2000 Prentice HallBases for Segmenting Business MarketsDemographicOperating VariablesPurchasing ApproachesSituational FactorsPersonal Characteristics2000 Prentice Hall MeasurableAccessibleSubstantialDifferential Segments must be large or profitable enough to serve.Segments can be effectively reached and served.Actionable Size,purchasing power,profiles of segments can be measured.Segments must respond differently to different marketing mix elements&actions.Must be able to attract and serve the segments.Effective Segmentation2000 Prentice HallAdditional Segmentation CriteriaEthical Choice of Market TargetsSegment Interrelationships&SupersegmentsSegment-by-Segment Invasion PlansIntersegment Cooperation2000 Prentice HallObjectivesIdentify Differentiating AttributesChoosing&Communicating Effective PositioningMarketing Strategies Along the Product Life CycleMarketing Strategy&Market Evolution2000 Prentice HallProduct DifferentiationFormFea-turesPerfor-manceQualityConform-anceQualityDura-bilityRelia-bilityRepair-abilityStyleDesign2000 Prentice HallDeliveryServices DifferentiationOrderingEaseMaintenance&RepairCustomerTrainingInstallationCustomerConsultingMiscellaneousServices2000 Prentice HallDifferentiationPersonnelChannel2000 Prentice HallImage Differentiation2000 Prentice HallDifferences WorthEstablishingAffordableSuperiorProfitablePreemptiveDistinctiveImportant2000 Prentice HallPositioning is the act of designing the companys offering and image to occupy a distinctive place in the the target markets mind.P 298 P 2982000 Prentice HallSales&Profit Life CyclesIntroductionIntroductionGrowthGrowthMaturityMaturityDeclineDeclineTimeSales&profits($)2000 Prentice HallFour IntroductoryMarketing StrategiesRapid-Rapid-skimmingskimmingstrategystrategyRapid-Rapid-penetrationpenetrationstrategystrategySlow-Slow-penetrationpenetrationstrategystrategySlow-Slow-skimmingskimmingstrategystrategyPriceLowLowHighHighPromotionHighHighLowLow2000 Prentice HallMaturity StageMarket ModificationProduct ModificationMarketing-Mix Modification2000 Prentice HallDecline StageDecrease investmentResolve uncertainties-stable investmentSelective nichesHarvestingDivesting2000 Prentice HallMarket EvolutionEmergenceGrowthMaturityDecline2000 Prentice HallObjectivesChallenges in New Product Development(NPD)Challenges in New Product Development(NPD)Organizational Structure&NPDOrganizational Structure&NPDStages&Management of NPDStages&Management of NPDDiffusion&Adoption of New ProductsDiffusion&Adoption of New Products2000 Prentice HallWhy New Products Fail“Over Championing”Over Championing”Overestimated DemandOverestimated DemandPoor DesignPoor DesignPoor Marketing ExecutionPoor Marketing ExecutionHigh Development CostsHigh Development CostsStrong Competitive ReactionStrong Competitive Reaction2000 Prentice HallChallenges in NPDIdea ShortageIdea ShortageFragmented MarketsFragmented MarketsSocial&Governmental ConstraintsSocial&Governmental ConstraintsCostCostCapital ShortageCapital ShortageNeed for SpeedNeed for SpeedShorter Product Life CyclesShorter Product Life Cycles2000 Prentice HallProbability of SuccessProbabilityProbabilityof technicalof technicalcompletioncompletionOverallOverallprobabilityprobabilityof successof success=Probability ofProbability ofcommercializationcommercializationgiven technicalgiven technicalcompletioncompletionXProbability ofProbability ofeconomiceconomicsuccess givensuccess givencommercializationcommercializationX2000 Prentice HallConcept Development&Testing1.Develop Product Ideas into Alternative Product Concepts2.Concept Testing-Test the ProductConcepts with Groups of Target Customers3.Choose the Best One2000 Prentice HallConsumer-Goods Market TestingSales-WaveResearchTest offering trail toa sample of consumers insuccessiveperiods.SimulatedTest MarketTest in a simulated shopping environmentto a sample of consumers.StandardTest MarketFull marketing campaignin a small number of representative cities.Controlled Test MarketA few stores that have agreed to carry newproducts for a fee.2000 Prentice HallCommercializationWhenWhereWhomProductPricePlacePromotion2000 Prentice HallCharacteristics of the Innovation Rate of AdoptionRelative advantageRelative advantageCompatibilityCompatibilityComplexityComplexityDivisibilityDivisibilityCommunicabilityCommunicability2000 Prentice HallObjectivesFactors to Consider Before Going GlobalFactors to Consider Before Going GlobalSelecting Foreign MarketsSelecting Foreign MarketsForeign Market EntryForeign Market EntryProduct Adaption for Global MarketingProduct Adaption for Global MarketingManagement&Organization of Global ActivitiesManagement&Organization of Global Activities2000 Prentice HallMajor Decisions in International MarketingDeciding whetherto go abroadDeciding whichmarkets to enterDeciding how toenter the marketDeciding on themarketing programDeciding on themarketing organization2000 Prentice HallChallenges in Going GlobalShifting bordersShifting bordersUnstable governmentsUnstable governmentsForeign-exchangeForeign-exchangeCorruptionCorruptionTechnological piratingTechnological pirating2000 Prentice HallCriteria for EntryMarket AttractivenessMarket AttractivenessRiskRiskCompetitive AdvantageCompetitive Advantage2000 Prentice HallFive Models of EntryInto Foreign MarketsDirectinvest-mentJointventuresLicensingDirectexportingIndirectExportingAmount of commitment,risk,control,and profit potential2000 Prentice HallInternationalization ProcessNo ExportExport via AgentsSales SubsidiariesProduction Abroad2000 Prentice HallFive International Productand Promotion StrategiesDualadaptationPromotionProductProductadaptationAdaptAdaptproductproductStraightextensionDo not changeDo not changeproductproductDo not changeDo not changepromotionpromotionCommuni-cationadaptationAdaptAdaptpromotionpromotionDevelop newDevelop newproductproductProductinvention2000 Prentice HallPricing ChallengesPrice EscalationDumping chargesGray marketsTransfer prices2000 Prentice HallWhole-channel Concept for International MarketingSellerSellers internationalmarketing headquartersChannels betweennationsChannels withinforeign nationsFinal buyers2000 Prentice HallObjectivesProduct CharacteristicsProduct CharacteristicsBuilding&Managing the Product Mix&Product LinesBuilding&Managing the Product Mix&Product LinesBrand DecisionsBrand DecisionsPackaging&LabelingPackaging&Labeling2000 Prentice HallSpecialty ProductsSpecialty ProductsUnsought ProductsUnsought ProductsShopping ProductsShopping ProductsBuy less frequently Gather product information Fewer purchase locations Compare for:Suitability&Quality Price&StyleConvenience ProductsConvenience Products Special purchase efforts Unique characteristics Brand identification Few purchase locations New innovations Products consumers dont want to think about.Require much advertising&personal sellingBuy frequently&immediately Low priced Many purchase locations Includes:Staple goods Impulse goods Emergency goodsConsumer-Goods Classification2000 Prentice HallProduct MixWidthWidth-number of different product linesLengthLength-total number of itemswithin the linesDepth Depth-number of versions of each productProduct Mix-Product Mix-all the product lines offeredConsistency2000 Prentice HallProduct-Line LengthLine StretchingLine StretchingDownmarketDownmarketUpmarketUpmarketTwo-wayTwo-wayLine FillingLine FillingLine ModernizationLine ModernizationLine Featuring&Line PruningLine Featuring&Line Pruning2000 Prentice HallWhat is a Brand?2000 Prentice HallBrand EquityNo Brand Loyalty(customer will change)Satisfied Customer(no reason to change)Satisfied&Switching CostValues the Brand(brand as friend)Devoted to Brand2000 Prentice HallBrand StrategiesBrandExtensionNewBrand NameProduct CategoryLineExtensionExistingExistingMultibrandsNewNewBrands2000 Prentice HallGood Brand Names:SuggestProductBenefitsDistinctiveLack PoorForeignLanguageMeaningsSuggestProductQualitiesEasy to:PronounceRecognizeRemember2000 Prentice HallWhy Package Crucial as a Marketing ToolSelf-serviceSelf-serviceConsumer affluenceConsumer affluenceCompany&brand imageCompany&brand imageOpportunity for innovationOpportunity for innovation2000 Prentice HallLabelsIdentifyIdentifyDescribeDescribePromotePromote2000 Prentice HallObjectivesService Definitions&ClassificationsService Definitions&ClassificationsHow Services Differ GoodsHow Services Differ GoodsImproving Service Differentiation,Quality,&ProductivityImproving Service Differentiation,Quality,&ProductivityImproving Customer Support ServicesImproving Customer Support Services2000 Prentice HallCategories of Service MixPurePureServiceServiceTangibleTangibleGoodGoodw/w/ServicesServicesMajorMajorServiceServicew/Goodsw/GoodsHybridHybridPurePureTangibleTangibleGoodGood2000 Prentice HallServicesInseparabilityServices cannotbe separatedfrom theirprovidersPerishabilityServices cannotbe stored forlater sale or useIntangibilityServices cannotbe seen,tasted,felt,heard,orsmelled beforepurchaseVariabilityQuality ofservices dependson who providesthem and when,where,and how2000 Prentice HallServicesInseparabilityIncreaseproductivity ofprovidersPerishabilityMatch supplyand demandIntangibilityUse cues tomake it tangibleVariabilityStandardizeserviceproduction&delivery2000 Prentice HallService DifferentiationOfferDeliveryImage2000 Prentice HallDeterminants of Service QualityReliabilityReliabilityResponsivenessResponsivenessAssuranceAssuranceEmpathyEmpathyTangiblesTangibles2000 Prentice HallServiceExcellenceStrategic ConceptStrategic ConceptTop-Management CommitmentTop-Management CommitmentHigh StandardsHigh StandardsMonitoring SystemsMonitoring SystemsSatisfying Customer ComplaintsSatisfying Customer ComplaintsSatisfying Both Employees&CustomersSatisfying Both Employees&CustomersManaging ProductivityManaging Productivity2000 Prentice HallComplaint ResolutionHiring Criteria&Training for EmployeesHiring Criteria&Trainin
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