Transcript Tonight: Marketing Fundamentals Ads Marketing Myopia Competitive Advantage

Tonight: Marketing Fundamentals
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Ads
Marketing Myopia
Competitive Advantage
Strategic Marketing Management
Ethics in Marketing
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Marketing Myopia
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Key theme in one or two sentences…
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Marketing Myopia
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Key theme in one or two sentences…
Ensure continued growth by concentrating on
meeting customer’s needs rather than
concentrating on selling products
Know the business you are in
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Marketing Myopia: Four Myths
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Marketing Myopia: Four Myths
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Myth 1: An ever-expanding and more affluent
population will ensure our growth.
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Marketing Myopia: Four Myths
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Myth 1: An ever-expanding and more affluent
population will ensure our growth.
When markets are expanding, we often assume
we don’t have to think imaginatively about our
businesses, but instead seek to outdo rivals
simply by improving what we are already doing.
Consequence: increased efficiency making
products rather than boosting the value those
products deliver to customers.
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Marketing Myopia: Four Myths
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Myth 2: there is no competitive substitute for
our industry’s major product.
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Marketing Myopia: Four Myths
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Myth 2: there is no competitive substitute for
our industry’s major product.
Believing that our products have no rivals makes
our companies vulnerable to dramatic
innovations –often by smaller newer companies
that focus on customer needs rather than the
products themselves
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Marketing Myopia: Four Myths
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Myth 3: We can protect ourselves through mass
production.
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Marketing Myopia: Four Myths
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Myth 3: We can protect ourselves through mass
production.
While the declining unit costs that come with
increased production are alluring, focusing on
mass production emphasizes our company’s
needs when we should be emphasizing our
customers’.
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Marketing Myopia: Four Myths
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Myth 4: Technical R&D will ensure our growth
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Marketing Myopia: Four Myths
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Myth 4: Technical R&D will ensure our growth
When R&D produces breakthrough products, it
is critical to remain focused on customer
needs…ideally, new products are both
breakthrough and meet customer needs
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What is Competitive Advantage?
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Competitive Advantage
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A set of unique features of a company and its
products that are perceived by the target market
as significant and superior to the competition
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Case Work
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Read Case
Break into small groups
Discuss using Competitive Advantage and
concepts from Marketing Myopia
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Strategic Marketing Management
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Answers three questions:
What is the organizations main business activity?
 What are long term goals?
 How will it reach its goals?
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Strategic Marketing Management
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Sears and Land’s End
Gap v Old Navy v Banana Republic
General Motors
Cadillac
 Saturn
 Buick
 Chevrolet
 Oldsmobile
 Pontiac
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Strategic Market Planning
Strategic Plan: the process of anticipating future events
and determining strategies to achieve organizational
objectives in the future
Marketing Planning: designing activities relating to
marketing objectives, the changing marketing
environment, and the marketing mix
Marketing Plan: a document that acts as a
guidebook of specified marketing activities and
their rationale.
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Ethics & Marketing
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Why do we care?
Examples of ethical issues
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Ethics & Marketing
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The moral principles or values that generally
govern the conduct of an individual or
group…the standards of behavior by which
conduct is judged
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Potential Ethical Dilemmas
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Typical Ethical Dilemmas
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Gift giving/entertainment
False or misleading
advertising
Misrepresentation of goods
or services
Lying to get the sale
Manipulation of data
Misleading warranties
Exploitation of children or
disadvantaged groups
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Stereotypical representation
of minorities, genders
Invasion or misuse of
customer privacy
Sexually oriented appeals
Unsafe products or services
Price deception
Price discrimination
Unfair competitor statements
Package size deceptions
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Ethics Exercise:
Abercrombie & Fitch
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Read hand out
Break into small groups
Discuss and prepare responses to:
Is marketing adult-style underwear to a younger
audience unethical? Why or why not?
 If the sexy words had been omitted from the front
of the product, would the issue be the same?
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Next Week
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Review Chapters 2 (Comp Adv) and 3 (Ethics)
in text
For two weeks: Read Chapters 6 and 7
(Consumer Decision Making/Business
Marketing)
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