Introduction and Overview

Dr. John Wong

Why Marketing?

Marketing function imperative for organizational success

Hypercompetitive marketplace Highly discriminating customers Changing consumer needs

Business Philosophies

Production concept Product concept Selling concept Marketing concept Holistic marketing concept

Holistic Marketing Concept Relationship marketing Integrated marketing Internal marketing Performance marketing

Financial accountability Socially responsible Cause marketing

Holistic Marketing

Core Marketing concepts

Needs, wants, demands, preferences Segmentation, targeting, positioning Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment

Target Markets, Positioning, and Segmentation Segmentation—identify and profile

distinct groups of buyers examining demographic, psychographic, and behavioral differences

Target markets—segments presenting the greatest opportunity

Positioning—what the offering means in the minds of the target buyers as delivering some central benefit(s).

What is Marketing?

Organization’s main tasks:

Determine needs, preferences, wants of key market segments

Create products to meet those needs -- deliver desired satisfaction

Marketing management -- process of achieving above

THE CULTURE CODE – Clotaire Rapaille

Unique Marketing Insights

Peter Drucker: The business of a business is to create and keep a customer

Charles Revson: In the factory we make cosmetics. In the stores we sell hope

Akio Morita: The highest level of business thinking is ‘marketing imagination’

What is a market?

1. Marketplace - physical 2. Metamarket - cluster of

complementary goods and services across diverse set of industries. includes metamediaries

3. Marketspace – digital

Marketing Issues

WHAT is marketed? Physical products, experiences, people, places, ideas, organizations

WHO’s responsibility?Everyone’s in the organization

C21st Marketplace Realities (1)

A. Major Societal Forces 1. Network information technology 2. Globalization 3. Deregulation 4. Increased competitiveness from

domestic and foreign brands 5. Creation of mega-brands and

“category-killers” 6. Disintermediation and

Reintermediation

C21st Marketplace Realities (2)

Empowered consumer capabilities

Highly discriminating Swayable brand loyalty Leverage Internet - info is power

C21st Marketplace Realities (3)Firms empowered by Internet Increased market reach Online communities --> brand

awareness Enhanced value chain management Interactive techno --> improves

target marketing & permission marketing efforts

Marketing Management Tasks Developing

marketing strategies and plans

Capturing marketing insights

Connecting with customers

Building strong brands

Shaping market offerings

Delivering value Communicating

value Creating long-term

growth

Marketing Process

Select Target MarketsSelect Target Markets

Design Marketing StrategiesDesign Marketing Strategies

Manage the Marketing EffortManage the Marketing Effort

Develop Marketing ProgramsDevelop Marketing Programs

Analyze Marketing OpportunitiesAnalyze Marketing Opportunities

Changes in Consumer Behavior

1980s 1990s PresentConspicuous consumer Frugal consumer, becoming

more well-offSuspicious but generally well-offconsumer

Image driven Value and quality driven Highly eclecticTrusting Skeptical and cynical A “prove it” attitudeBrand loyal Does not exhibit loyalty Believes that there is always

something betterEmotional buyer Informed buyer Highly informed and specializedDreamers Escapists Focused on personal needsOverindulgent Health, wellness-conscious Health, wellness and some

overindulgence, withoutexpectation of costs orconsequences

Overworked Burnt-out, stressed out andplacing tremendous value onconvenience and time

Reliant on technology andtelecommunications to save timein making purchase decisions

Industrious Baby Boomer Responsible Baby Boomer Unconvinced Generation Xer

1980s 1990s PresentConspicuous consumer Frugal consumer, becoming

more well-offSuspicious but generally well-offconsumer

Image driven Value and quality driven Highly eclecticTrusting Skeptical and cynical A “prove it” attitudeBrand loyal Does not exhibit

loyaltyBelieves that there is alwayssomething better

Emotional buyer Informed buyer Highly informed and specializedDreamers Escapists Focused on personal needsOverindulgent Health, wellness-conscious Health, wellness and some

overindulgence, withoutexpectation of costs orconsequences

Overworked Burnt-out, stressed out andplacing tremendous value onconvenience and time

Reliant on technology andtelecommunications to save timein making purchase decisions

Industrious Baby Boomer Responsible Baby Boomer Unconvinced Generation Xer

The Marketing Mix

Core Marketing Competencies Beyond the 4 P’s

Product + Service (people, process, physical evidence)

Price Promotion Place/distribution Positioning - connecting Personal relationships -

customization

The 4 C’s of Marketing

CARE: More than service --> they treat customers -- customers are really everything.

CHOICE: reassess diversity & breadth of offerings --> a manageable good-better-best selection

COMMUNITY: Even national marketers must be affiliated, attached to neighborhoods wherever they operate stores

CHALLENGE: The task of dealing with the ongoing reality of demographic change.

New Approaches in Marketing Exploit Internet & new electronic

communication technologies – beyond websites e-marketing, texting, network communities (E.g. Obama campaign)

Fighting economic downturn & e-commerce onslaught CRM & stronger branding, cross-selling, SCM, strong data-base system