1. ©2010 FLAT WORLD KNOWLEDGE, INC. 1 Ethics Companies are being held to a higher standard Customers will punish unethical behavior Sustain- ability Consumers want to protect the earth’s resources Companies must reduce impact of activities on the planet Global Companies must understand global trade and economics Advances in transportation, communications, and computing have created global markets and competitors The Marketing Environment Is Changing

2. ©2010 FLAT WORLD KNOWLEDGE, INC. 2 Delivering VALUECommunicating VALUE Exchanging VALUE Creating VALUE PRODUCTPRICE PLACEPROMOTION The focus has changed from the 4Ps to value Key Takeaways

3. ©2010 FLAT WORLD KNOWLEDGE, INC. 3 Value as determined by the customer Exchanging products for $$ Delivering products Communicating about products Creating products Marketing is all about VALUE

4. Value* = benefits received – (price + hassle) * Value is determined by the customer And In recognizing the importance of the customer and value, market oriented companies employ the marketing concept ©2010 FLAT WORLD KNOWLEDGE, INC. 4 VALUE Defined

5. ©2010 FLAT WORLD KNOWLEDGE, INC. 5 Most companies have mission statements that emphasize:  Values  Customers  Motivation of employees Corporate planning uses this mission statement as the framework in developing the corporate strategy. The marketing plan, as part of the corporate plan, articulates the strategy for creating, communicating, and delivering an exchange of value. The Marketing Plan

6. THE VALUE PROPOSITION A 30-second “elevator speech”*  Here are the benefits of our product  This is why it is superior to other ones ©2010 FLAT WORLD KNOWLEDGE, INC. 6 *Getting your point across to someone before the elevator reaches the bottom.

7. STRATEGIC PLANNING SWOT ANALYSIS StrengthsWeaknesses Internal elements (within your control) Products Technology investments Operations Employees Internal elements (within your control) Products Technology investments Operations Employees OpportunitiesThreats External elements (outside of your control) The customer The economy The competition Technology (availability) Legal and regulatory issues External elements (outside of your control) The customer The economy The competition Technology (availability) Legal and regulatory issues

8. THE SWOT ANALYSIS—INTERNAL ©2010 FLAT WORLD KNOWLEDGE, INC. 8 Internal factors are strengths and/or weaknesses (companies can control these factors) Strengths could be: 1. financial 2. market position 3. patents 4. management 5. costs Weaknesses could be: 1. competitive position 2. organization structure 3. supplier dependency 4. product line 5. brand awareness Key actions : Capitalize on a strength Address a weakness

9. THE SWOT ANALYSIS—EXTERNAL ©2010 FLAT WORLD KNOWLEDGE, INC. 9 External factors are opportunities and threats (companies can’t control these factors) Opportunities can be : 1. global markets 2. enabling technologies 3. growing consumer wealth 4. currency exchange rates 5. government spending Threats can be: 1. economic contraction 2. government regulations 3. social and political changes 4. trade barriers 5. taxes and mandated expenses Actions required stay informed on global markets and issues anticipate and prepare for government actions monitor technology advances