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AGENDA
Introduction
Course content Discussion of course syllabus
Project: Marketing Plan!
Your introductions (student info sheet)
Start Chapters 1 and 2
ADVERTISING…
Westfield Stratford City
WHO AM I?
Teaching this term: Comm 204: Introduction to Marketing Comm 447: Entrepreneurship and Small Business Management
Source: http://www.marketingmag.ca/brands/crafting-small-market-identity-with-big-market-marketing-123200
EXAMPLE 2…
TEXTBOOK
Marketing: An Introduction, 5th Canadian Edition
But, you can also use the 3rd or 4th Edition.
EMAILING
Please address me by: Melissa, Ms. Strom, Prof. Strom, etc… Not, “hey you”, or “hey”
Also, please include your name At least first name and initial of last name (Ex: Ryan D.)
EVALUATION CRITERIA
Marketing Plan: 45% Phase 1 and 2 (done individually)- 10% each Phase 3 (final report and presentation)- 17.5% and
7.5% Phase 3 report and presentation done as a group
and has peer evaluation component
Midterm Exam 15%
Final Exam: 35%
Participation: 5% Participation sheets, randomly given Not marked for “correctness”
MARKETING PLAN
Past Clients: Midtown Plaza Lululemon JoJo’s Boreal Bars Manitou Springs Resort and Mineral Spa Club Mynx Neechie Gear Great Western Brewery
MARKETING PLAN
Phase 1: Marking rubric posted External research required Prairie Proud Case provided
▪ On blackboard shortly
Done individually
Phase 2: Marking rubric posted Done individually
MARKETING PLAN
Phase 3: Done in groups Written and presentation components Marking rubric for report component is posted on blackboard
(presentation rubric to be)
IN-CLASS EXERCISE
You will be given 6 slips of paper
Look at what is written on the slip of paper If you agree with what is written, keep the paper If you disagree, trade the slip of paper with someone else You want to end up with 6 slips of paper that describe you
•Chapter 1 What is marketing? Needs, wants and demands Customer relationship management
•Chapter 2 Strategic planning
MARKETING IS…
Attracting new customers by promising and delivering superior value.
Building long-term relationships with customers by delivering continued customer satisfaction.
Creating, building and managing these relationships profitably over time.
VALUE IS DEFINED DIFFERENTLY BY EACH CONSUMER
www.dlightdesign.com
Moving Windmills
http://williamkamkwamba.typepad.com/
NEEDS, WANTS, DEMANDS
Needs are states of felt deprivation. Physical.
▪ Food, clothing, shelter, safety. Social.
▪ Belonging, affection. Individual.
▪ Learning, knowledge, self-expression.
▪ Everyone has basic needs
We all need clothing, but we all want to wear something different.
NEEDS, WANTS, DEMANDS
Our “wants” differ Based on culture and personality
Our buying power creates demands.
Successful marketers understand the needs, wants and demands of their customers
PRODUCTS, SERVICES, EXPERIENCES
Products. Anything that can be offered for acquisition, attention, use, or
consumption that might satisfy a need or want.
Services. Activities or benefits offered that are essentially intangible and do
not result in ownership of anything.
Experiences. Create, stage, and market brand experiences Attending live theatre, music concert.
WHAT ARE THEY “SELLING”?
Hal Johnson and Joanne McLeod- Body Break
Hinterland Who’s Who
MARKETING MANAGEMENT ORIENTATIONS- THE PRODUCTION CONCEPT
Run the risk of marketing myopia
Customers will favour products that are available and highly affordable
Management focuses on production and distribution efficiencies
MARKETING MANAGEMENT ORIENTATIONS-THE PRODUCT CONCEPT
• Consumers favour products that offer the most in quality, performance and innovative features.
• Can lead to marketing myopia.
MARKETING MANAGEMENT ORIENTATIONS-THE SELLING CONCEPT
• Idea that the company has to use large scale promotional efforts to sell their products.
MARKETING MANAGEMENT ORIENTATIONS-THE MARKETING CONCEPT
•Knowing the needs and wants of target markets and delivering satisfaction better than competitors do
MARKETING MANAGEMENT ORIENTATIONS-THE SOCIETAL MARKETING CONCEPT
Taking into consideration the long-run welfare of society Company-profits Consumers- want satisfaction Society- human welfare
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
20% of customers create 80% of profit Customer relationships are important!
Customer Perceived Value Customer’s subjective view of the offer’s value compared to competitive offers. Example: Coca-Cola
Customer Satisfaction Customer’s subjective view of the value received in return for the purchase price. Customer satisfaction versus customer loyalty
Customer Delight Customer’s subjective view of the increased value received above the purchase price.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Customer lifetime valueAll the purchases by that customer over their lifetime.
Customer shareShare of customer is the percentage of customers that buy a company’s product of all customers purchasing in that product category.
Customer equityThe total combined customer lifetime value of all of the company’s customers.
Often a more accurate measure of a company’s value than sales or market share.
INTRUSION VERSUS ATTRACTION
Kokanee Ranger
Commercial
www.kokanee.ca
Leads to consumer-generated marketing
IMPORTANT POINTS:
You want to build the right relationships with the right customers
You can’t be everything to everyone
CUSTOMER RELATIONSHIP GROUPS
1-44
Projected loyalty
High
Profitability
Low
Long-term customers
Short-term customers
Good fit between company’s offerings
and customer’s needs; high profit potential
Limited fit between company’s offerings
and customer’s needs; low profit potential
Little fit between company’s offerings
and customer’s needs; lowest profit potential
Good fit between company’s offerings
and customer’s needs; highest profit potential
Strangers
Butterflies True Friends
Barnacles
WHAT IS STRATEGIC PLANNING?
Strategic Planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
A&W ARTICLE
Read articles provided
In groups, discuss questions on sheet
One sheet per group to be handed in at end of class
Once group discussion is complete, we will discuss as a class
MISSION STATEMENTS
A mission statement is a statement of the organization’s purpose – what it wants to accomplish in the larger environment Example: Nike’s mission is “to bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)”
STRATEGIC BUSINESS UNIT (SBU)
A unit of the company that has a separate mission and separate objectives and that can be planned independently from other company businesses.
Can be a company division, a product line within a division or sometimes a single product or brand.
What do Old Navy, The Gap and Banana Republic all have in common?
BUSINESS PORTFOLIO The business portfolio is the collection of businesses and products that make up the company.
The company must: Analyze its current business portfolio or Strategic Business Units
(SBUs). Decide which SBUs should receive more, less or no investment. Develop growth strategies for growth or downsizing.
BCG (BOSTON CONSULTING GROUP) GROWTH-SHARE MATRIX
Low
High
High Low
Industry attractiveness,Market share, Cash generation
Nurture to feed cash to?
Use cash to make into star
Defend position
Fix or abandon
Businessstrength,Growth rate,Cash use
PROBLEMS WITH MATRIX APPROACHES Several problems exist: Can be difficult, time consuming, and costly to implement Difficult to define SBUs and measure market share and growth rate Focus is on current businesses; gives little help with future planning
As a result, many companies favour more customized strategic planning approaches
USING TIM HORTON’S AS AN EXAMPLE Market penetration. Make more sales to current customers without changing products. Add new stores in current market areas; improve advertising,
prices, menu, service.
Market development. Develop new markets for current products. Review new demographic such as women, youth. Examine large potential U.S. market.
USING TIM HORTON’S AS AN EXAMPLE Product development. Offering modified or new products to current markets. Add lunch offerings and iced drinks, sell coffee in supermarkets, co-
brand products.
Diversification. Start up or buy businesses outside current products and markets. Making and selling CDs, testing restaurant concepts or branding
casual clothing.
PRODUCT/MARKET EXPANSION GRID EXAMPLE
Source: http://auto.howstuffworks.com/smart-car.htm
Also…YouTube Video Rental
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