Principles of Marketing BA 390 Fall 2006 Dr. McAlexander

What is Marketing?  Do you know your pharmacist?  What about the person who made your shoes?

What do we do?  We facilitate exchange –Effectiveness –Efficiency  Who are our customers?

Key Terms  Needs: Functional, Symbolic, and Experiential  Wants: Culturally shaped needs  Demands: Add buying power  Product: Complex bundle of satisfactions.

Marketing Management Strategic Planning and the Marketing Process

Evolution  Production Orientation  Product Orientation  Selling Orientation  Marketing Orientation: The Marketing Concept  Societal Marketing Concept –Balance interests of consumer, society, and firm

Managerial Imperative  Marketing Generates Revenue  Mandate: Attract, Retain, and Grow Customers –Customer value: differences between customer costs and benefits –Customer satisfaction, loyalty, and retention  Customer Equity: Combined Customer Lifetime Values

Strategic Planning Process Define the Mission Set Objectives And Goals Design Business Portfolio

Defining the Mission  Statement of purpose –Market Oriented  Product orientation could be short-sighted  Based on Distinctive Competencies  Motivating

Harley-Davidson We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments.

Setting Objectives and Goals  Obviously relate to mission statement  Time specific and measurable

Business Portfolio: BCG and Friends High ShareLow Share High Growth Low Growth

Porter’s Generic Strategies  Low Cost  Differentiation  Focus

Growth StrategiesStrategies  Existing Products and Markets: –Market Penetration  Existing Products and New Markets –Market Development  New Products and Existing Markets –Product Development  New Products and New Markets –Diversification

Marketing Process: Segmentation, Targeting, and Positioning  Market Segmentation –Demographic –Benefit –Psychographic

Market Targeting  Choose to serve one or more segments  Fit with abilities and resources of the firm.  Competitive intensity

Market Positioning  The place the product occupies in the mind of the consumer relative to the competition. 

Marketing Mix PRODUCT PLACE PRICE PROMOTION

Marketing Environments  Micro Environments –The company

Marketing Environments  Micro Environments –The company –Suppliers –Marketing Intermediaries –Customers –Competitors –Publics

Marketing Environments  Macro Environments –Demographic  Age  Ethnicity  Geographic shifts  Income distribution

Marketing Environments  Macro Environments –Demographic –Economic –Natural

Natural Environment  Natural Resources and Marketing Perspectives –Market Segments –Impacts upon the environment

Marketing Environments  Macro Environments –Demographic –Economic –Natural –Technological

Technological Environment  WSJ –Having babies: prenatal screening… –Stay in touch with families: myfamily.com –Find love: 73% of singles use the internet –Watch TV and listen to the radio –Fandom –Shop

Marketing Environments  Macro Environments –Demographic –Economic –Natural –Technological –Political

Political Environment  Impact of legislation: all levels of government –Pricing: price discrimination (Robinson- Patman Act) –Product: unsafe toys and articles (Child Protection Act also Consumer Product Safety Act) and warranties (Manuson- Moss Warranty Act)

Marketing Environments  Macro Environments –Demographic –Economic –Natural –Technological –Political –Cultural