Transcript Welcome to MOPS! - WVU College of Business and Economics

MARKETING THOUGHTS ….
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WHAT IS MARKETING?
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MARKETING:
Definition:
(Adapted from Kotler 2000)
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MARKETING AS EXCHANGE
Items of Value
BUYER
Need
Want
Benefit
Deman
d
SELLER
Items of Value
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KEY TERMS:
NEED:
WANT:
BENEFIT:
DEMAND:
VALUE:
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The Marketing Concept:
• An organization’s basic purpose is to
___________________________
• This requires integrated and coordinated
efforts in the organization
• Organizations should focus on (long or
short) term success
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What Do We Market
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•
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TOOLS TO MAKE
EXCHANGE MORE LIKELY
THE MARKETING MIX (4 P’s)
P____________
P____________
P____________
P____________
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A General Marketing Model
economic
environment
legal/political
environment
institutional
environment
technological
environment
customer
competitive
environment
social
environment
Marketing Concept: satisfy consumer needs at a profit
Marketing is a Process
• Market Planning
• Segmenting the Market
• Selecting a Target Market
• Positioning the Product
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EVOLUTION OF A CONCEPT
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Different Orientations to Bring
About Exchanges
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Production Orientation
Product Orientation
Selling Orientation
Marketing Orientation
Relationship Marketing Orientation
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THINGS TO THINK ABOUT
• How does marketing affect
your life?
– How does marketing satisfy your needs
– What areas of your life – if any are not
affected by marketing?
• Does marketing create
needs?
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MARKETING STRATEGY
“If you don’t know where you are going you might
end up somewhere else”
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STRATEGIC ISSUES
• WHERE ARE WE
NOW?
• WHERE DO WE
WANT TO GO?
• HOW DO WE GET
THERE?
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A Strategic Planning Model
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CORPORATE LEVEL
PLANNING
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CORPORATE LEVEL FUNCTIONS:
 Define the Corporate Mission
 Evaluate Environment
 Set Organizational Goals and Objectives
 Establish the Business Portfolio
 Grow the Business
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MISSION STATEMENT
• Broad Statement of Purpose:
– What is your organization’s mission statement?
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Defining a Company’s Present
Business
• Narrow
• Broad
soft drinks
videos
toys
life insurance
computers
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Environmental Analysis
SWOT Analysis:
Strengths
Opportunities
Weaknesses
Threats
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SWOT--Internal Environment
• Strengths and Weaknesses
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EXTERNAL ENVIRONMENTS
• Opportunities and Threats:
1.
2.
3.
4.
5.
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Evaluate Your Company’s
Business Environments
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COMPETITIVE ENVIRONMENT
Who are our current and potential
competitors?
Who/What are competitors’ targets,
strategies, strengths, weaknesses?
What are potential competitive reactions?
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Who is the Competition:
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A Customer Perspective
Intensity of Competition
Importance of Substitute Products
Potential Competition
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The Nature of Competition:
Structure of the Industry:
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Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
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TECHNOLOGICAL
ENVIRONMENT
• Evolution of Wants
– “Creative Destruction”
• Long-term unforseeable consequences
• Accelerated pace of Change
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POLITICAL-LEGAL
ENVIRONMENT
• Consumer Bill of Rights (1962 JFK)
• Regulatory Agencies
– FTC, FDA, FCC, EPA…
• Increased Legislation
– Protect companies, consumers, society
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SOCIO-CULTURAL/
DEMOGRAPHIC ENVIRONMENT
• Demographics
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Age mix
Ethnic/racial mix
Education
Household Patterns
Geographical Shifts
• Beliefs, Values, Norms
– Persistence of core beliefs/values
– Existence of subcultures
– Shift of secondary beliefs
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ECONOMIC ENVIRONMENT
• Factors Influencing Purchasing
Power:
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• Two-tier US Economy
• Reactions to Poor Economic Times
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ENVIRONMENTAL CHANGE
CHANGES IN THE
ENVIRONMENT CAN
REPRESENT A THREAT OR AN
OPPORTUNITY – IT DEPENDS
ON THE FIRM’S STRENGTHS
ANDWEAKNESSES
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Establishing the Structure of the
Business
A PORTFOLIO APPROACH
GOALS:
1.
2.
3.
4.
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PORTFOLIO APPROACHES
BCG MATRIX:
Classify SBU on 2 variables:
1. market attractiveness
2. company strength
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BCG MATRIX
RELATIVE MARKET SHARE
Question Marks
Stars
Market
Growth
Rate
?
Cash Cows
Dogs
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GROWTH STRATEGIES
Current Markets
Current
Products
New
Products
MARKET
PENETRATION
PRODUCT
DEVELOPMENT
New Markets
MARKET
DEVELOPMENT
DIVERSIFICATION
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GROWTH STRATEGIES:
Market Penetration:
1. Increase Usage
2. Introduce Intermediaries
3. Mandatory Consumption
Market Development:
1. Expanding to new geographic markets or
new market segments
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GROWTH STRATEGIES:
Product Development:
New Products for the current market -- utilizing
strengths
Diversification:
Horizontal
Vertical
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Exercise 1:
• Bring in two products from the same
product category that would be used by
different “types” of people
• Describe the person who buys this product
• Describe the Marketing Mix for this
Product
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