Transcript Chapter 1 - Wright State University

marketing strategy
O. C. Ferrell
Michael D. Hartline
Marketing in
Today’s Economy
C H A P T E R
The Challenges and Opportunities
Of Marketing in Today’s Economy
•
•
•
•
•
•
•
•
Power Shift to Customers
Massive Increase in Product Selection
Audience and Media Fragmentation
Changing Value Propositions
Shifting Demand Patterns
New Sources of Competitive Advantage
Privacy, Security, and Ethical Concerns
Unclear Legal Jurisdiction
1-2
U.S. Households by Internet Access
Exhibit 1.1
1-3
The Children’s Online Privacy Protection Act
(COPPA)
Exhibit 1.2
1-4
Discussion Question
• Increasing customer power is a challenge to
marketers in today’s economy. In what ways
have you personally experienced this shift in
power; either as a customer or as a business
person? Is this power shift uniform across
industries and markets? How so?
1-5
Basic Marketing Concepts
• Marketing (AMA 2005 definition)
– “…an organizational function and a set of processes for
creating, communicating, and delivering value to customers
and for managing customer relationships in ways that benefit
the organization and its stakeholders.”
• Market
– A collection of buyers and sellers
1-6
Basic Marketing Concepts
• Marketspace
– Electronic marketplaces that are not bound by time or space
• Metamarket
– A cluster of closely related goods and services that center
around a specific consumption activity
• Metamediary
– Provides a single access point where buyers can locate and
contact many different sellers in the metamarket
1-7
Common Metamarkets and
Participants
Exhibit 1.3
1-8
What is Exchange?
• Exchange
– Process of obtaining something of value by offering
something in return
• Five Conditions of Exchange
–
–
–
–
–
There must be at least two parties to the exchange.
Each party has something of value to the other party.
Each party must be capable of communication and delivery.
Each party must be free to accept or reject the exchange.
Each party believes it is desirable to exchange with the other
party.
1-9
What is a Product?
• Product
– Something that can be acquired via exchange to satisfy a
need or a want
• Examples
-
Goods
Services
Ideas
Information
Digital Products
-
People
Places
Experiences and Events
Real or Financial Property
Organizations
1-10
The Concept of Utility
• Utility
– Ability of a product to satisfy a customer’s desires
• Five Types of Utility
–
–
–
–
–
Form Utility
Time Utility
Place Utility
Possession Utility
Psychological Utility
1-11
Major Marketing Activities and
Decisions (1 of 5)
• Strategic Planning
– Strategy
– Tactical Planning
– Marketing Plan
• Social Responsibility and Ethics
– Social Responsibility
– Marketing Ethics
1-12
Discussion Question
• How concerned are you about privacy and
security in today’s economy? Are you more
concerned about online security or about the
potential ramifications of RFID technology? Will
these issues still be important in 10 years?
Explain.
1-13
Major Marketing Activities and
Decisions (2 of 5)
• Research and Analysis
–
–
–
–
Internal Analysis
Competitive Intelligence
Environmental Scanning
Situation Analysis
• Developing Competitive Advantage
– Competitive Advantage
– SWOT Analysis
1-14
Major Marketing Activities and
Decisions (3 of 5)
• Marketing Strategy Decisions
– Market Segmentation and Target Marketing
– Product Decisions
• Product Positioning
– Pricing Decisions
• Leads to revenue and profit
• Directly connected to customer demand
• Easy to change
• Major quality cue for customers
1-15
Online Social Networking
• Social networking sites like MySpace.com, LinkedIn.com,
and Facebook.com have been criticized for questionable
content and easy access to predators.
• How can advertisers balance the opportunities presented by
these sites with the risk?
Beyond the Pages 1.2
1-16
Major Marketing Activities and
Decisions (4 of 5)
• Marketing Strategy Decisions (continued)
– Distribution and Supply Chain Decisions
• Distribution and Supply Chain Management
• Supply Chain Effectiveness
– Promotion Decisions
• Integrated Marketing Communications (IMC)
1-17
Major Marketing Activities and
Decisions (5 of 5)
• Implementation and Control
– Marketing Implementation
• Developing and Maintaining Customer Relationships
– Transactional Marketing
– Relationship Marketing
1-18
Major Characteristics of Transactional
and Relationship Marketing
Exhibit 1.4
1-19
Taking on the Challenges of
Developing Marketing Strategy (1 of 2)
•
•
•
•
Unending Change
People-Driven Nature of Marketing
Lack of Rules for Choosing Marketing Activities
Basic Evolution of Marketing & Business
Practice
• Increasing Demands of Customers
• Overall Decline in Brand Loyalty & Increase in
Price Sensitivity
1-20
Discussion Question
• The text argues that marketing possesses very few
rules for choosing the appropriate marketing
activities. Can you describe any universal rules of
marketing that might be applied to most products,
markets, customers, and situations?
1-21
Taking on the Challenges of
Developing Marketing Strategy (2 of 2)
• Competing in Mature Markets
– Increasing commoditization
– Little real differentiation among product offerings
• Increasing Expansion into Foreign Markets
• Aggressive Cost-Cutting Measures
• Increasing Cooperation with Supply Chain
Partners and Competitors
1-22
American Customer Satisfaction Index
Exhibit 1.5
1-23
Marketing Strategy in Action
• Increasing expansion into foreign markets is becoming a
necessity to compete in the global marketplace.
• What kind of opportunities and threats are presented by the
increasing global nature of the marketplace?
1-24