Principles of Marketing BA 390

Principles of Marketing

BA 390

Fall 2006Dr. McAlexander

What is Marketing? Do you know your pharmacist? What about the person who made your

shoes?

What do we do? We facilitate exchange

– Effectiveness– Efficiency

Who are our customers?

Key Terms Needs: Functional, Symbolic, and

Experiential Wants: Culturally shaped needs Demands: Add buying power Product: Complex bundle of

satisfactions.

Marketing ManagementStrategic Planning

and theMarketing Process

Evolution Production Orientation Product Orientation Selling Orientation Marketing Orientation: The Marketing

Concept Societal Marketing Concept

– Balance interests of consumer, society, and firm

Managerial Imperative Marketing Generates Revenue Mandate: Attract, Retain, and Grow

Customers– Customer value: differences between customer

costs and benefits– Customer satisfaction, loyalty, and retention

Customer Equity: Combined Customer Lifetime Values

Strategic Planning Process

Define the Mission

Set ObjectivesAnd Goals

Design BusinessPortfolio

Defining the Mission Statement of purpose

– Market Oriented Product orientation could be short-sighted

Based on Distinctive Competencies Motivating

Harley-DavidsonWe fulfill dreams through the

experience of motorcycling,by providing to motorcyclists and to

the general publican expanding line of motorcycles and

branded products and servicesin selected market segments.

Setting Objectives and Goals

Obviously relate to mission statement Time specific and measurable

Business Portfolio: BCG and Friends

High Share Low Share

HighGrowth

LowGrowth

Porter’s Generic Strategies

Low Cost Differentiation Focus

Growth Strategies Existing Products and Markets:

– Market Penetration Existing Products and New Markets

– Market Development New Products and Existing Markets

– Product Development New Products and New Markets

– Diversification

Marketing Process: Segmentation, Targeting, and Positioning

Market Segmentation– Demographic– Benefit– Psychographic

Market Targeting Choose to serve one or more

segments Fit with abilities and resources of the

firm. Competitive intensity

Market Positioning The place the product occupies in the

mind of the consumer relative to the competition.

http://www.buell.com/

Marketing Mix

PRODUCT

PLACEPRICE

PROMOTION

Marketing Environments Micro Environments

– The company

Marketing Environments Micro Environments

– The company– Suppliers– Marketing Intermediaries– Customers– Competitors– Publics

Marketing Environments Macro Environments

– Demographic Age Ethnicity Geographic shifts Income distribution

Marketing Environments Macro Environments

– Demographic– Economic– Natural

Natural Environment Natural Resources and Marketing

Perspectives– Market Segments– Impacts upon the environment

Marketing Environments Macro Environments

– Demographic– Economic– Natural – Technological

Technological Environment

WSJ– Having babies: prenatal screening…– Stay in touch with families: myfamily.com– Find love: 73% of singles use the internet– Watch TV and listen to the radio– Fandom– Shop

Marketing Environments Macro Environments

– Demographic– Economic– Natural – Technological – Political

Political Environment Impact of legislation: all levels of

government– Pricing: price discrimination (Robinson-

Patman Act)– Product: unsafe toys and articles (Child

Protection Act also Consumer Product Safety Act) and warranties (Manuson-Moss Warranty Act)

Marketing Environments Macro Environments

– Demographic– Economic– Natural – Technological – Political – Cultural