Transcript Session 02 - U of L Class Index

Marketing Management
Marketing in the Twenty-First Century
Dr. Zafer Erdogan
1-1
Marketing
Traditionally,
Companies structured themselves in functional
areas
However,
Companies are breaking down these and working
to become customer-centric to create customer
value.
Of course,
It requires effective marketing!
And, what is marketing?
1-2
The Scope of Marketing
Marketing:
typically seen as the task of
creating, pricing, promoting, and
delivering goods and services to
consumers and businesses.
Mutually satisfying exchange
relationships.
1-3
Marketing Management
Managing Marketing efforts
planning, organizing, implementing,
coordinating and controlling of marketing
activities
Such as:
Analyzing markets, segmenting,
choosing target markets, developing
marketing mix and so on.
1-4
Marketing Managers Job
Marketing managers try to influence the level,
timing, and composition of demand to meet
company’s objectives.
In other words,
Marketers are skilled in stimulating demand
for a company’s product.
Surprise, Surprise!
Demand varies from product to product !
1-5
1. Negative demand
Table 1.1
Demand
States and
Marketing
Tasks
A major part of the market dislikes the
product and may even pay a price to avoid it.
Analyze why, lower prices, change attitudes
2. No demand
Target consumers may be unaware of or
uninterested in the product. Find ways to
connect the benefits of product to needs & wants
3. Latent demand
Consumers may have a strong need that
cannot be satisfied by any existing product.
Develop products and services
4. Declining demand
Sooner or later every product faces a decline
Analyze the causes and re-stimulate
5. Irregular demand
Varying demand on a seasonal, daily or
even hourly bases. Synchronize
6. Full demand
Companies are pleased! Maintain and Improve
7. Overfull demand
Higher than what can be handled. Demarket
permanently or temporarily
8. Unwholesome
demand
Unwholesome products will attract organized
efforts to discouraged their consumption.
Get people give up using marketing tools
See p.7 for details
1-6
Can you name a category of products
for which your negative feelings have
softened? What precipitated this
change?
1-7
Marketing Concepts
Dramatic changes over the last 3 decades;
– Focus on customers (vs. products and
selling)
– Marketing globally (or lose out)
– Understanding and responding
technology
• Not just competing, but creating and
innovating
1-8
Changes in Consumers
1980s-Industrious
Baby Boomer
Conspicuous consumer
Image driven
Trusting
Brand loyal
Emotional buyer
Dreamers
Overindulgent
Overworked
2002-Generation Xer
Suspicious but well-off
Highly eclectic
Frugal consumer
A "prove it" attitude
Value driven
Believes that there is
Skeptical and cynical
always something
better
Does not even know
loyalty
Highly informed and
Informed buyer
specialized
Escapists
Focused on personal
Health, wellnessneeds Health, wellness
conscious
and some
Burnt-out, stressed out
overindulgence, without
and placing
expectation of costs or
consequences
tremendous value on
convenience and time Reliant on technology and
Responsible
telecoms. to save time
in making purchased
decisions Unconvinced
1990s - Responsible
Baby Boomer
1-9
End of the Mass Markets
Will Database marketing replace Mass marketing?
It is in the process just as we speak!
- 70s, only high-end retailers and personal-service firms
with personal selling and index-card files
- 80s, as the mainframe computer became more
practical, airlines got into the act with a proliferation
of their frequent flyer programs.
- 90s, bookstore chains, supermarkets, warehouse
clubs, and restaurants tracked individual purchase
transactions to build their "share of the customer.“
- Nowadays, everyone is doing it with the virtually
unlimited options, including on-site interactivity,
Web site connections, fax-response, E-mail, and
interactive television, mobile phones you name it...
1-10
The Near Future…
• Very soon real-time interactivity with television sets
and through the Internet.
• In ten years;
– individuals will interact with their television and / or
computer simply by speaking to it.
– The computer will remember your transactions
and preferences, getting smarter and smarter
about finding just the right entertainment,
information, products, and services.
– That same computer will also be able to anticipate
what you might want, while being careful to protect
you from commercial intrusions you don't find
relevant or interesting.
1-11
There is no longer a single mass market!
Because the lifestyles have changed so
dramatically.
Some of the important demographic shifts
have been:
– Increasing diversity of the population.
– Changing family and living patterns.
– Nearly all of today's children grow up in a
world of divorce and working mothers.
1-12
In Sum,
The need for market analysis and
marketing decision-making, and
managers to perform those tasks, has
never been greater.
But, as the course will demonstrate, the
complexities of, and analytical tools
required for, these activities have never
been greater.
Be prepared for a challenging experience.
1-13
Exercise
The Typical Canadian Family
1950s
1975s
2000s
family size :
income :
work status :
education :
other
Demo. factors :
1-14