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Current Current Marketing Marketing
Issues SeminarIssues SeminarBA635Dr. Ed Forrest
(Office) 786-4161 / (Cell) 854-8784
Email: [email protected]
W3site: http://faculty.cbpp.uaa.alaska.edu/afef/
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First, buyers are no longer paying much attention. Several studies have confirmed that in the "buyer's decision journey," traditional marketing communications just aren't relevant.
Second, CEOs have lost all patience. In a devastating 2011 study of 600 CEOs….77% have had it with all the talk about brand equity that can't be linked to actual firm equity or any other recognized financial metric. 3
Tonight:
• Address defining elements of course:
•What is Marketing
•What are the “Current Issues”
• Organize / Select Research Topics/Teams ….
5
Everything is
OnlineEverything is
Online
6
What is Marketing
?
7
… Innate sense for marketing
I’m I’m
calling it calling it
HOTHOT
I’m I’m
calling it calling it
HOTHOT
““The Dawn of Marketing”The Dawn of Marketing”““The Dawn of Marketing”The Dawn of Marketing”
For 1,000’s of years…
bartered & traded “branded” goods & services
I thinkI think
might be might be
betterbetter
I thinkI think
might be might be
betterbetter
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Everybody’s a Marketer:
Everybody promotes themselves….
Packages themselves …..
Everybody has their price……
The Marketing Process:
Situation AnalysisSituation Analysis Strategic Strategic PlanningPlanningStrategic Strategic PlanningPlanning
•CCompanyompany
•CConsumersonsumers
•CCompetitorsompetitors
•CConditionsonditions• PESTPEST
TargetTargetMarketMarket
Product Place
PromotionPrice
TargetTargetMarketMarket
Product Place
PromotionPrice
TargetTargetMarketMarket
Product Place
PromotionPrice
The Marketing Mix:The Marketing Mix:
Marketing StrategyMarketing Strategy
Growth & Growth & CompetitiveCompetitive StrategiesStrategies
P’s
WMWM
TGTTGT
EEDD
CCNNGG
FF
Service Positioning Positioning StrategyStrategy
55thth p p =p2p=p2p
Classic Functional Definition
All activities performed in between:
The Point of ProductionThe Point of Production
&
The Point of ConsumptionThe Point of Consumption
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11stst Formal Definition Formal Definition ~1919~1919
Marketing defined as ‘‘the manner in the manner in which the product which the product is disposed of, the is disposed of, the way in which it is way in which it is distributed…, distributed…, through various through various channels of channels of trade.” trade.”
*Marketing and Merchandising by Ralph Butler & John Swinney,
•Book distinguishes marketing from merchandising,
•w/ marketing being something manufacturers do •& merchandising being the domain of jobbers; retailers.
Marketing DefinedMarketing Defined -
1935 -
“The performance of business
activities that direct the flow of goods &
services from producers to consumers.”
Marketing Defined-Marketing Defined-as a Process- 1985as a Process- 1985
"The process of planning & executing the conception,
pricing, promotion & distribution of ideas, goods
& services to create exchange & satisfy
individual & organizational objectives"
The The Latest Official Official AMA Definition AMA Definition (circa (circa
2004)2004)
..an organizational function & a set of processes
for creating, communicating & delivering value to customers
& for managing customer relationships in ways that benefit the organization & its stakeholders
Why the changed focus?
What happened between 1985 & 2004 that made the AMA change the definition of marketing?
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Marketing should be customer-
centric -- not brand-centric"
Marketing should be customer-
centric -- not brand-centric"
The 1985 definition was not encompassing enough. The new definition more clearly infuses the customer into marketing."
The 1985 definition was not encompassing enough. The new definition more clearly infuses the customer into marketing."
The AMA Rationale: “Technology & marketing been changing quite rapidly over last five to 10 years…
Focus on Focus on ConsumerConsumer–Not Not productproduct
Long –Term Long –Term RelationshipsRelationships Not Short-term Sales
Management Reorientation
Marketing > Function =An Orientation
“Marketing is…
the whole business seen ….
from the customers’ point of view.”
“The aim of marketing is to
know & understand the customer so well
the product or service …sells
itself.”
~ Peter F. Drucker
“Marketing is too important to be left to
the marketing department.”
The marketing department did the marketing…Now everyone does some marketing
Company was the unit of analysis.........Now whole value chain is unit of
analysis
Average ConsumerAverage Consumer
Customer AnonymityCustomer Anonymity
Standard Mktg. MixStandard Mktg. Mix
Mass ProductionMass Production
Mass DistributionMass Distribution
Mass AdvertisingMass Advertising
Mass PromotionMass Promotion
One-Way Comm.One-Way Comm.
Economies of ScaleEconomies of Scale
Share of MarketShare of Market
All CustomersAll Customers
Customer AttractionCustomer Attraction
Must Change Your focus & objectives:
Individual CustomerIndividual Customer
Customer RelationshipCustomer RelationshipCustomized Market
OfferingCustomized Market
OfferingCustomized ProductionCustomized Production
Individualized DistributionIndividualized Distribution
Individualized MessageIndividualized Message
Individualized IncentivesIndividualized Incentives
Interactive CommunicationInteractive Communication
Economies of ScopeEconomies of Scope
Share of CustomerShare of Customer
Profitable CustomersProfitable Customers
Customer RetentionCustomer Retention
From: To:
Marketing
Next Step- ID the issues…
Ten Issues Marketers Should Have on Their 2012 Agenda | Special ...
adage.com/article/special-report...issues-marketers-2012.../231502/Cached – Here are 10 issues for marketers in 2012
Ramkhamhaeng University Institute for International Studies
GB 635 Current Issues in MarketingCourse Outline
London Metropolitan University MK3P04 Current Issues in Marketing
Syllabus Developing criteria to
evaluate marketing plans against selected issues.Creating appropriate research methods to investigate issues.Ethics and the practise of marketing
Sample issues:
Green MarketingConsumerismUse of I.T. in marketingBrand ValuationStereotyping in advertising
Marketing performance The Creation of Customer Satisfaction & ValueBuyer Behavior Relationship Marketing Inter-firm Relationships in Marketing Services Marketing & Service Quality Competition & Strategy Marketing and Information Technology Marketing Globally Ethics and Legal Issues in Marketing
Marketing Issues- as delineated Marketing Issues- as delineated by by 1999 UAA Syllabus1999 UAA Syllabus……
As it is -On Any Syllabus, any On Any Syllabus, any Year or Day- One can find Year or Day- One can find Issues ofIssues of:Product Quality
Service Quality
Consumer Confidence/Satisfaction
Value/Pricing Practices
Free/Fair trade
Globalization
Advertising (volume, veracity, political-correctness)
What’s most relevant-
Marketer- Issues = factors
that affect sales
• Consumer-Issue = factors
that affect one’s sensibilities
Depends on Your Perspective:
Fact is--these & most issues…
Are RE-CURRENT
issues- that Ebb & Flow
w/ socio-economic
events
We could- examine all these issues 1 by 1…
Quite taxing
& Just too
Superficial
Examining only symptoms --not diagnosing the
cause
“Yes… you seem to be suffering
from a marketing issue”
Ergo- the Real Question
is….
Ergo- the Real Question
is….Where do marketing issues come from?
Marketing’s “utility”/value derived from its Facilitation of Exchange!
Willing
to sell
Willing
to buy
Temporal Utility
Spatial Utility
Transactional Utility
Marketing
Key Point: Keep Marketing in Perspective
Anything/Everything one does to facilitate
exchange
Whatever impactsWhy- What- Where- When- How Exchange occurs…
is (or becomes) an Issue…
Marketing Issues in Perspective
Marketing - part of Business & Business - part of Society
Marketing
Business Society
“Societal Change” creates
“issues” for Business…
which creates
“issues” for Marketing
One needs to identify-anticipate-
understand
Thus- in order to identify- anticipate- understand
Marketing Issues in particular
Societal Change in general
Society Defined:Society Defined:
A group of humans broadly distinguished by:
mutual interests, participation in
characteristic relationships,shared institutions, &a common culture
Hence- our search for marketing issues begins w/ examination of…
Patterns of/changes to:
human interests, relationships, institutions &
culture…
…become marketing issues
THUS-
In the final analysis marketing strategy is formulated to
address…
& what better time to study
Societal Change
…We are living thru one of the great periods
of societal change in the
history of humankind…
… in the way we live, communicate, work, produce & consumelive, communicate, work, produce & consume……
… in the way we live, communicate, work, produce & consumelive, communicate, work, produce & consume……
We’re in midst - next great Paradigm Shift…Paradigm Shift…We’re in midst - next great Paradigm Shift…Paradigm Shift…
An entirely new & increasingly
complex ecosystem has emerged,
which impacts the way people
connect, engage, influence,
--& are influenced.
Major Marketing Issues: 2012
#1: How do I measure the effect of social media marketing on my business?
#2: How do I integrate and manage all of my social media marketing activities?
#3: What are the best ways to sell with social media?
#4: How do I improve customer engagement with social media?
Online Ad Spend to Overtake TV by 2016
Social Media Not Only Issue:
the keyword has changed… For anyone going into business these days
The New keyword-
Algorithm
Requisite for today’s marketer: Apply Tools & Technologies
that generate, capture, analyze & leverage DATA
DATA
Automated online assistant
Business intelligence
Business Relationship Management
Comparison of CRM systems
Consumer Relationship System
Customer Experience
Customer experience transformation
Customer Intelligence
Customer service -
Data management
Data mining
Database marketing
E-crm
Employee experience management (EEM)
Enterprise Feedback Management (EFM)
Partner Relationship Management (PRM)
Predictive analytics
Professional services automation software (PSA)
Sales force management system
Sales intelligence
Sales process engineering
Support automation
Supplier relationship management
International Customer Service -
Vendor Relationship Management
New Mrktg Skill Sets
• Lead Mgt
• Sales Force Mgt
•Digital Asset Mgt
•Web Content Mgt
•Marketing Resource Mgt
•Marketing Operations Mgt
• 6 decades into the computer revolution
• 4 decades since the invention of the microprocessor
• 2 decades into the rise of the modern Internet
----all the technology required to transform industries thru software finally works & can be widely delivered @ global scale
In 2000..the cost of a customer running a basic Internet application was ~$150,000 a month. …
same application today in Amazon's cloud costs ~$1,500 a month…
Today: •The world's largest bookseller, Amazon
•largest video service -Netflix
•The dominant music companies Apple's iTunes, Spotify, Pandora
•The fastest growing entertainment companies are videogame/software designers
•The largest direct marketing platform—Google
•The fastest growing telecom company is Skype
•And Higher Education
is being MOOCified by Coursera
I Will Create Jobs I Will Fix the
Economy
Ultimately- Most Critical Competency = Ability to
Act on Results of Analyses
Kaiser
