1. Chapter 2

2. Learning objectives  The marketing system  The marketing concept and marketing management  Evolution of marketing management  Strategic planning

3. Figure 2-1: A Company’s Complete Marketing System Macroenvironmental forces: Physical environment Demography Economic conditions Sociocultural factors Political-legal factors Technology Competition Company’s marketing mix: Product planning Price structure Distribution system Promotional activities Marketing intermediaries Suppliers The market Nonmarketing resources in the firm: Production Financial Personnel Public image Research & devel. Location Marketing intermediaries

4. The marketing concept  A philosophy: Achieving organizational goals depends on the firm’s ability to identify the needs and wants of a target market, and then to satisfy those needs and wants better than the competition does.  Based on three fundamental beliefs  Company planning and operations should be customer or market oriented.  Marketing activities in a firm should be organizationally coordinated.  The goal of the organization should be to generate profitable sales volume over the long run

5. Evolution of marketing management  Production orientation  Focus on mass-producing a limited variety of products for as little cost as possible.  Sales orientation  Age of the hard-sell.  Marketing orientation  The marketing concept first emerges.  Relationship orientation  A natural extension of the marketing-orientation stage.  The buyer and seller commit to doing business over a long time.

6. Evolution of selling in the US  Peddlers  Canvassers  Book agents  Drummers

7. Relationship marketing  Open communication  Empowering employees  Customers and the planning process  Working in teams  Total quality management

8. Teaching teamwork  In your opinion, which one of these (if any) would be most effective at teaching a salesperson how to be an effective member of a selling team?  Cooking class  Drum circle  Military exercise  Outdoor adventure  Ropes exercise

9. Integrating…  …Marketing and Sales  Marketing executives  develop marketing strategy  Salespeople  implement the strategy in the field  …Production and Sales  Production makes what Sales sells  Close integration / accurate forecasts needed, or else…  Under-production  dissatisfied customers  Over-production  excessive, costly inventory

10. Strategic Planning  Objectives are the broad goals around which a strategic plan is formulated.  Strategies are the plans of action.  Tactics are the specific activities that people must perform in order to carry out the strategy. Set Objectives Formulate Strategies Develop Tactics

11. Company Marketing Objectives Strategy Increase marketing share 10% Company Strategy – Marketing Objectives and Strategy Earn 20% ROI Strategy Increase share of customer business Increase market share 10% Objectives

12. Marketing Sales Force Strategy Increase share of customer business Marketing Strategy – Sales Force Objectives, Strategy and Tactics Increase share of customer business Strategy Build long-term customer relations Tactics Develop sales teams Provide bonuses for greater customer share Increase market share 10% Objectives

13. Strategic Trends  Internet Selling  Multiple Sales Channels  Multiple Relationship Strategies  Transaction selling  Consultative selling  In this era of global warming, toxic waste, pollution, and other concerns, marketing executives must act in a socially responsible manner if they wish to succeed or even survive.

14. Customer Relationship Management (CRM)  CRM practices  Involve a company-wide software application utilizing advanced computer- and Internet-technology.  Aggregate all information about customers into a single database.  Provide salespeople/customers access to timely and relevant information.  Allow effective management of every aspect of the buyer- seller relationship.  Require training  Only effective if salespeople embrace it and are willing to use it.

15. Summary