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Part 1 Marketing Strategy and Environment
marketing 16e Part 1 Marketing Strategy and Environment Hult | Pride | Ferrell
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1: Strategic Marketing Management
2: Developing and Implementing Marketing Strategies 3: The Global Marketing Environment © 2012 South-Western, a part of Cengage Learning
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Learning Objectives To be able to define marketing as focused on customers To identify some important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment To become aware of the marketing concept and market orientation To understand the importance of building customer relationships To learn about the process of marketing management To recognize the role of marketing in our society © 2012 South-Western, a part of Cengage Learning
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Marketing Defined The process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment © 2012 South-Western, a part of Cengage Learning
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Components of Strategic Marketing
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Who is the Focus of Marketing?
Customers The purchasers of organizations’ products Are the focal point of all marketing activities Target Market A specific group of customers on whom an organization focuses its marketing efforts © 2012 South-Western, a part of Cengage Learning
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Think About It Axe features a line of body sprays
Uses a multimedia marketing approach YouTube Facebook Twitter Viral Marketing To promote a new fragrance, Axe Music, Unilever staged concerts around the country featuring major music acts Based on what you know about Axe, who is Axe’s target market? © 2012 South-Western, a part of Cengage Learning
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Discussion Question Skinny Cow low-fat dessert products are not for all consumers Who is Skinny Cow’s target market? © 2012 South-Western, a part of Cengage Learning
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The Marketing Mix Variables
Marketers combine and balance four elements when determining how to satisfy customers’ needs for a product Product Price Distribution Promotion © 2012 South-Western, a part of Cengage Learning
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Product Variable A product can be a: Good Service Idea
Is a haircut a product? What about telecommunications services? © 2012 South-Western, a part of Cengage Learning
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Price Variable Relates to decisions and actions associated with establishing pricing objectives and policies Relates to determining product prices Determines the value of the exchange © 2012 South-Western, a part of Cengage Learning
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Think About It Honda promotes the safety of its vehicles and great value for the price. Can you think of any other brands or products that do that? Do you agree that Hondas are a good value for the cost? Click here to access the company website © 2012 South-Western, a part of Cengage Learning
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Distribution Variable
Make products available in quantities desired Minimize costs: Inventory Transportation Storage Select/motivate intermediaries Establish/maintain inventory control Develop/manage transportation and storage systems © 2012 South-Western, a part of Cengage Learning
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Promotion Variable Inform individuals or groups about the organization and its products/services Advertising Public relations Personal selling Promotions Street teams Viral marketing © 2012 South-Western, a part of Cengage Learning
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Think About It Advertising firm, vm-people, put together the this ad outlining the use of viral marketing Do you think viral marketing can help firms attract business? click on the logo © 2012 South-Western, a part of Cengage Learning
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Relationships with Customers
Exchange The provision or transfer of goods, services, or ideas in return for something of value © 2012 South-Western, a part of Cengage Learning
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Stakeholders Constituents who have a “stake,” or claim, in some aspect of a company’s products, operations, markets, industry and outcomes BP was implicated in the largest oil spill in history Who were affected stakeholders? What has BP done to repair stakeholder relations? What else can it do? © 2012 South-Western, a part of Cengage Learning
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Marketing Environment
The six forces that surround the customer and affect the marketing mix: Economic forces Political forces Legal and regulatory forces Technological forces Socio-cultural forces Competitive forces The marketing environment is dynamic Unlike marketing-mix variables, an organization has no control over these forces © 2012 South-Western, a part of Cengage Learning
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Marketing Environment
© 2012 South-Western, a part of Cengage Learning
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The Marketing Concept A management philosophy that an organization should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals Not a second definition of marketing or a philanthropic philosophy A firm must satisfy its own objectives © 2012 South-Western, a part of Cengage Learning
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Firms To Know: Herman Miller
A successful high-end furniture maker Recognized as highly ethical Long history of environmental advocacy and stakeholder awareness Satisfied employees Comprehensive benefits Non-discriminatory workplace Does Herman Miller utilize the marketing concept? Click here for more information © 2012 South-Western, a part of Cengage Learning
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The Evolution of the Marketing Concept
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Production and Sales Orientations
Production Orientation Industrial Revolution improved speed and efficiency Large increases in available products Sales Orientation Many products with not enough demand Businesses viewed sales and selling as the main means of increasing profits © 2012 South-Western, a part of Cengage Learning
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The Market Orientation
An organization-wide commitment to researching and responding to customer needs Emerged in the mid-20th century Determine what customers want and product those products © 2012 South-Western, a part of Cengage Learning
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Implementing the Marketing Concept
Establish an information system to discover customers’ real needs Use the information to create satisfying products Coordinate all activities © 2012 South-Western, a part of Cengage Learning
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Managing Customer Relationships
Relationship Marketing Establishing long term mutually satisfying, buyer/seller relationships Customer-centric Marketing Developing collaborative relationships with customers based on focusing on their individual needs and concerns © 2012 South-Western, a part of Cengage Learning
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Think About It How can the Internet help marketers engage in relationship marketing? Facebook and Twitter help companies improve their relationship marketing Live, real-time updates Two-way dialogue with customers Fan pages and Like features on Facebook help businesses find their target markets © 2012 South-Western, a part of Cengage Learning
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Customer Relationship Marketing (CRM)
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships © 2012 South-Western, a part of Cengage Learning
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Value-Driven Marketing
A customer’s subjective assessment of benefits relative to costs in determining the worth of a product Value Customer Benefits – Customer Costs = © 2012 South-Western, a part of Cengage Learning
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What kind-of marketing approach did Maxwell House take?
Discussion Question What kind-of marketing approach did Maxwell House take? © 2012 South-Western, a part of Cengage Learning
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Marketing Management The process of planning, organizing, implementing and controlling marketing activities to facilitate exchanges effectively and efficiently Effectiveness is the degree to which an exchange helps achieve organizational objectives Efficiency involves maximizing the resources an organization must spend to achieve a specific level of desired exchanges © 2012 South-Western, a part of Cengage Learning
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The Importance of Marketing in Our Global Economy
Consumes Large Proportion of Buyers’ Dollars Is Used by Non-Profits Is Important to Business Economy and the Fuels the Global Economy Awareness Consumer Enhances through Technology Connects People Promotes Welfare of Consumers and Society Creates Career Prospects © 2012 South-Western, a part of Cengage Learning
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Discussion Questions Marketing helps to connect people in the global economy How does Apple utilize technology in its marketing efforts? How do Apple products keep customers connected? © 2012 South-Western, a part of Cengage Learning
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Green Marketing A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting and enhancing the natural environment A way to engage in socially responsible marketing © 2012 South-Western, a part of Cengage Learning
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Think About It What are the benefits of green marketing?
Method sells home care and personal products with stakeholders in mind Safe, biodegradable ingredients Minimal packaging Eco-friendly © 2012 South-Western, a part of Cengage Learning
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Career Prospects All organizations engage in some kind of marketing
Even non-profits and government agencies 25-33% of non-government workers in the U.S. perform marketing activities Marketing skills are valuable in every field © 2012 South-Western, a part of Cengage Learning
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Important Terms Marketing Marketing concept Customers
Marketing orientation Marketing mix Relationship marketing Target market Customer-centric marketing Products Customer relationship management (CRM) Exchanges Value Stakeholders Marketing management Marketing environment Green marketing © 2012 South-Western, a part of Cengage Learning
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