1. Marketing in Today’s Economy1
C H A P T E R

2. The Challenges and Opportunities Of Marketing in Today’s Economy
Power Shift to Customers
Massive Increase in Product Selection
Audience and Media Fragmentation
Changing Value Propositions
Shifting Demand Patterns
New Sources of Competitive Advantage
Privacy, Security, and Ethical Concerns
Unclear Legal Jurisdiction

3. U.S. Households by Internet Access
Exhibit 1.1

4. The Children’s Online Privacy Protection Act (COPPA)
Exhibit 1.2

5. Discussion Question
Increasing customer power is a challenge to marketers in today’s economy. In what ways have you personally experienced this shift in power; either as a customer or as a business person? Is this power shift uniform across industries and markets? How so?

6. Basic Marketing Concepts
Marketing (AMA 2005 definition)
“…an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”
Market
A collection of buyers and sellers

7. Basic Marketing Concepts
Marketspace
Electronic marketplaces that are not bound by time or space
Metamarket
A cluster of closely related goods and services that center around a specific consumption activity
Metamediary
Provides a single access point where buyers can locate and contact many different sellers in the metamarket

8. Common Metamarkets and Participants
Exhibit 1.3

9. What is Exchange? Exchange Five Conditions of Exchange
Process of obtaining something of value by offering something in return
Five Conditions of Exchange
There must be at least two parties to the exchange.
Each party has something of value to the other party.
Each party must be capable of communication and delivery.
Each party must be free to accept or reject the exchange.
Each party believes it is desirable to exchange with the other party.

10. What is a Product? Product Examples
Something that can be acquired via exchange to satisfy a need or a want
Examples
Goods
Services
Ideas
Information
Digital Products
People
Places
Experiences and Events
Real or Financial Property
Organizations

11. The Concept of Utility Utility Five Types of Utility
Ability of a product to satisfy a customer’s desires
Five Types of Utility
Form Utility
Time Utility
Place Utility
Possession Utility
Psychological Utility

12. Major Marketing Activities and Decisions (1 of 5)
Strategic Planning
Strategy
Tactical Planning
Marketing Plan
Social Responsibility and Ethics
Social Responsibility
Marketing Ethics

13. Discussion Question
How concerned are you about privacy and security in today’s economy? Are you more concerned about online security or about the potential ramifications of RFID technology? Will these issues still be important in 10 years? Explain.

14. Major Marketing Activities and Decisions (2 of 5)
Research and Analysis
Internal Analysis
Competitive Intelligence
Environmental Scanning
Situation Analysis
Developing Competitive Advantage
Competitive Advantage
SWOT Analysis

15. Major Marketing Activities and Decisions (3 of 5)
Marketing Strategy Decisions
Market Segmentation and Target Marketing
Product Decisions
Product Positioning
Pricing Decisions
Leads to revenue and profit
Directly connected to customer demand
Easy to change
Major quality cue for customers

16. Online Social Networking
Social networking sites like MySpace.com, LinkedIn.com, and Facebook.com have been criticized for questionable content and easy access to predators.
How can advertisers balance the opportunities presented by these sites with the risk?
Beyond the Pages 1.2

17. Major Marketing Activities and Decisions (4 of 5)
Marketing Strategy Decisions (continued)
Distribution and Supply Chain Decisions
Distribution and Supply Chain Management
Supply Chain Effectiveness
Promotion Decisions
Integrated Marketing Communications (IMC)

18. Major Marketing Activities and Decisions (5 of 5)
Implementation and Control
Marketing Implementation
Developing and Maintaining Customer Relationships
Transactional Marketing
Relationship Marketing

19. Major Characteristics of Transactional and Relationship Marketing
Exhibit 1.4

20. Taking on the Challenges of Developing Marketing Strategy (1 of 2)
Unending Change
People-Driven Nature of Marketing
Lack of Rules for Choosing Marketing Activities
Basic Evolution of Marketing & Business Practice
Increasing Demands of Customers
Overall Decline in Brand Loyalty & Increase in Price Sensitivity

21. Discussion Question
The text argues that marketing possesses very few rules for choosing the appropriate marketing activities. Can you describe any universal rules of marketing that might be applied to most products, markets, customers, and situations?

22. Taking on the Challenges of Developing Marketing Strategy (2 of 2)
Competing in Mature Markets
Increasing commoditization
Little real differentiation among product offerings
Increasing Expansion into Foreign Markets
Aggressive Cost-Cutting Measures
Increasing Cooperation with Supply Chain Partners and Competitors

23. American Customer Satisfaction Index
Exhibit 1.5

24. Marketing Strategy in Action
Increasing expansion into foreign markets is becoming a necessity to compete in the global marketplace.
What kind of opportunities and threats are presented by the increasing global nature of the marketplace?