Upload
camilla-joseph
View
275
Download
0
Tags:
Embed Size (px)
Citation preview
1
Marketing,Marketing Strategy,and Marketing Environment
2
Topic1
What is Marketing?
MGT252F L0301 Week2: Marketing, Strategy, and Environment
3
Definition of Marketing
Marketing is a total system of business activities designed to plan, promote, and distribute want-satisfying products, services, and ideas to target markets in order to achieve the objectives of both the consumer and the organization (Sommers et al., p.6)
MGT252F L0301 Week2: Marketing, Strategy, and Environment
4
PRODUCTION ORIENTATION
SALESORIENTATION
MARKETING ORIENTATION
Late 1800s Early 1930s Mid-1950s 1900s
Evolution of Marketing Concept
MGT252F L0301 Week2: Marketing, Strategy, and Environment
5
Evolution of Marketing Concept:Production Oriented Stage
Late 1800’s to Early 1930At the early stage of industrialization,
when demand exceeded supply“Customers would purchase reasonably
priced and well-made products”Empathize mass production at lower
cost
MGT252F L0301 Week2: Marketing, Strategy, and Environment
6
Evolution of Marketing Concept:Sales Oriented Stage
Early 1930’s to Mid 1950’sAfter supply began exceeding
demand“Selling what a company makes
rather than makes what the market wants”
MGT252F L0301 Week2: Marketing, Strategy, and Environment
7
Marketing Concept
Customer Oriented Focused on customers’ need rather than
product itself
MGT252F L0301 Week2: Marketing, Strategy, and Environment
8
Marketing Concept
Customer Oriented Focused on customers’ need rather than
product itself Customer satisfaction
MGT252F L0301 Week2: Marketing, Strategy, and Environment
9
Marketing Concept
Customer Oriented Focused on customers’ need rather than
product itself Customer satisfaction
What is marketed? Products, services, ideas, people, and places
MGT252F L0301 Week2: Marketing, Strategy, and Environment
10
Marketing Concept
Customer Oriented Focused on customers’ need rather than product
itself Customer satisfaction
What is marketed? Products, services, ideas, people, and places
Extension to Non-profit marketing Societal marketing : marketing + social
responsibility
MGT252F L0301 Week2: Marketing, Strategy, and Environment
11
Career in Marketing
Some important marketing jobs Advertising Brand and product management Marketing research International marketing Retailing management Sales and sales management New product planning
12
Topic2
Strategic Marketing Planning and Management
MGT252F L0301 Week2: Marketing, Strategy, and Environment
13
Strategic Marketing Planning & Mgmt. Process
Develop Marketing Objectives
Marketing Mix
Market Segmentation, Target Market Selection, and Product Positioning
Situational Analysis
Develop Marketing Objectives Most companies have
multiple objectives Must be hierarchical,
realistic, and consistent Marketing objectives
includeProfitabilitySales growthMarket share......
MGT252F L0301 Week2: Marketing, Strategy, and Environment
14
Strategic Marketing Planning & Mgmt. Process
Develop Marketing Objectives
Marketing Mix
Market Segmentation, Target Market Selection, and Product Positioning
Situational Analysis
Situational Analysis includes the analysis of external and internal marketing environment
We can find market opportunities from situational studies
SWOT analysis
MGT252F L0301 Week2: Marketing, Strategy, and Environment
15
Strategic Marketing Planning & Mgmt. Process
Develop Marketing Objectives
Marketing Mix
Market Segmentation, Target Market Selection, and Product Positioning
Situational Analysis
Market Segmentation
Target Market Selection
Product Positioning
MGT252F L0301 Week2: Marketing, Strategy, and Environment
16
Strategic Marketing Planning & Mgmt. Process
Develop Marketing Objectives
Marketing Mix
Market Segmentation, Target Market Selection, and Product Positioning
Situational Analysis
Marketing mix strategy involves decisions on 4P’s Product Price Place Promotion
MGT252F L0301 Week2: Marketing, Strategy, and Environment
17
Marketing Management of Multiple Brands: BCG Matrix
A matrix for managing multiple brands or SBU (strategic business unit) (e.g.,) Toyota’s SBUs
LexusLuxury Sedan (Avalon, Camry)Small Sedan (Corolla, Tercel)Sports CarSport Utility Vehicle
MGT252F L0301 Week2: Marketing, Strategy, and Environment
18
Marketing Management of Multiple Brands: BCG Matrix
Each SBU can be classified according to Market Share relative to competition Growth Rate of the industry
These factors are divided into high and low categories
The resulting 2 x 2 grid has 4 quadrants that represent distinct categories of SBUs or major products.
MGT252F L0301 Week2: Marketing, Strategy, and Environment
19Copyright © 1998 by The McGraw-Hill Companies, Inc.3-7
Stars
Cash cows Dogs
Question marks
High Low
High
Low
COMPANY’S MARKET SHAREIN
DU
ST
RY
GR
OW
TH
RA
TE
MGT252F L0301 Week2: Marketing, Strategy, and Environment
20
Marketing Management of Multiple Brands: BCG Matrix
Stars High market shares with high industry growth rates A need for lots of cash to maintain competition and market share
Cash Cows High market shares with low industry growth rates A company can make a lot of money
Question Marks (or Problem Children) Low market shares with high industry growth rates Needing a lot of investment to build market share
Dogs Low market shares with low industry growth rates
MGT252F L0301 Week2: Marketing, Strategy, and Environment
21Copyright © 1998 by The McGraw-Hill Companies, Inc.3-7
Stars
Cash cows Dogs
Question marks
High Low
High
Low
COMPANY’S MARKET SHAREIN
DU
ST
RY
GR
OW
TH
RA
TE
MGT252F L0301 Week2: Marketing, Strategy, and Environment
22
Marketing Management of Growth: Product-Market Growth Matrix
In order to grow, a company has to consider both its markets and its products.
The product-market growth matrix depicts the options available in considering markets and products.
MGT252F L0301 Week2: Marketing, Strategy, and Environment
23Copyright © 1998 by The McGraw-Hill Companies, Inc.3-9
PRESENT PRODUCTS
PRESENTMARKETS
NEW PRODUCTS
NEWMARKETS
Marketpenetration
Marketdevelopment
Productdevelopment
Diversification
MGT252F L0301 Week2: Marketing, Strategy, and Environment
24
Marketing Management of Growth: Product-Market Growth Matrix
Market penetration Sell more of its current product to its present markets (e.g.) Sales promotion
Market development Sell its products to a new market (e.g.) Arms & Hammer Baking Soda to deodorant market
Product Development Develop a new product to sell to existing market (e.g., Intel)
Diversification Develop a new product for new market
25
Topic3
Marketing Environment &Situational Analysis
MGT252F L0301 Week2: Marketing, Strategy, and Environment
26
Marketing Environment
The factors and forces outside marketing that affect marketing activities and performance
Monitoring marketing environment helps identifying.. Changing consumer need Market opportunity
MGT252F L0301 Week2: Marketing, Strategy, and Environment
27
Marketing Environment
FIRM
MICRO-
ENVIRONMENT
MACRO-
ENVIRONMENT
MGT252F L0301 Week2: Marketing, Strategy, and Environment
28
Micro Environment
A company’s micro environment includes.. The company Suppliers Intermediaries Customers
More controllable than macro marketing environment
MGT252F L0301 Week2: Marketing, Strategy, and Environment
29
Macro Environment
Macro marketing environment includes Demography Economic conditions Competition Social and cultural forces Political and legal forces Technology
A company has little control of macro environment
MGT252F L0301 Week2: Marketing, Strategy, and Environment
30
Macro Environment: Demography
size, density, location, age, gender, race, and occupation of human population
Notable trends Aging baby boomers Generation X Increasing ethnic and racial diversity
MGT252F L0301 Week2: Marketing, Strategy, and Environment
31
Macro Environment: Demography
0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000
0–4
10–14
20–24
30–34
40–44
50–54
60–64
70–74
80–84
90 +age
Male Female
MGT252F L0301 Week2: Marketing, Strategy, and Environment
32
Macro Environment: Economic Conditions
Factors that affect consumer buying power and spending patterns Business cycle Inflation Interest rate Unemployment Income International trade (globalization)
MGT252F L0301 Week2: Marketing, Strategy, and Environment
33
Macro Environment: Competition
Direct competition brand competition (e.g., COKE vs. Pepsi) store competition (e.g., Dominion vs. Loblaw) service competition (e.g., Bell vs. Sprint)
Substitute competition Competition between products or services not
being similar but satisfying same customer need (e.g.) Bell long distance calling service vs.
Internet (e-mail) service provider
MGT252F L0301 Week2: Marketing, Strategy, and Environment
34
Macro Environment: Social and Cultural Forces
Changes of lifestyle, social values, beliefs, and preference
Notable Trends Concern for health and fitness Concern for environment Changing family
MGT252F L0301 Week2: Marketing, Strategy, and Environment
35
Macro Environment: Technology
Forces that create new technologies, creating new product and market opportunity (e.g.) Computer & telecommunication
enabled internet marketing
MGT252F L0301 Week2: Marketing, Strategy, and Environment
36
Macro Environment: Political and Legal Forces
Laws, government agencies, and pressure group
Federal legislation affects... Trade practices (e.g., competition act) Product standards and grades (e.g.,
Consumer Packaging and Labeling Act) Health and safety (e.g., Food and Drug
Act)
MGT252F L0301 Week2: Marketing, Strategy, and Environment
37
SWOT Analysis
A method for situational analysisSWOT consists of ..
Strengths: favorable internal factors Weaknesses: unfavorable internal
factors Opportunity: favorable external factors Threat: unfavorable external
factors
MGT252F L0301 Week2: Marketing, Strategy, and Environment
38
SWOT Analysis: Example (a health food company)
Strengths low production cost higher product quality, etc
Weaknesses high distribution cost low awareness, etc
Opportunity increased interest in health growth of older population, etc
Threat new competitor government regulation on food products