Transcript Chapter 1

MARKETING STRATEGY
O.C. FERRELL • MICHAEL D. HARTLINE
1
Marketing in the
New Economy
Challenges and Opportunities
In the New Economy
•
•
•
•
•
•
Power Shift to Customers
Massive Increase in Product Selection
Changing Value Propositions
Shifting Demand Patterns
New Sources of Competitive Advantage
Privacy, Security, and Ethical Concerns
1-2
Basic Marketing Concepts
• Market:
– A collection of buyers and sellers
• 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
[see Exhibit 1.2, p. 7]
• Metamediary:
– Provides a single access point where buyers can locate and
contact many different sellers in the metamarket
1-3
What is Exchange?
• Exchange:
– Process of obtaining something of value by offering
something in return
• Five Conditions for Exchange:
–
–
–
–
–
(1) There must be at least two parties to the exchange.
(2) Each party has something of value to the other party.
(3) Each party must be capable of communication and delivery.
(4) Each party must be free to accept or reject the exchange.
(5) Each party believes it is desirable to exchange with the
other party.
1-4
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
1-5
The Concept of Utility
• Utility:
– Ability of a product to satisfy a customer’s
desires.
• Four Types of Utility:
–
–
–
–
(1) Form Utility
(2) Time Utility
(3) Place Utility
(4) Possession Utility
1-6
Major Marketing Activities
and Decisions (1 of 4)
• Strategic Planning
– Strategy
– Tactical Planning
• Research and Analysis
– Internal Analysis
– Competitive Intelligence
– Environmental Scanning
– Situation Analysis
1-7
Major Marketing Activities
and Decisions (2 of 4)
• Developing Goals and Objectives
– SWOT Analysis
• Developing and Maintaining Customer
Relationships
– Transactional Marketing
– Relationship Marketing
[see Exhibit 1.3, p. 13]
• Marketing Strategy Decisions
– Competitive Advantage
1-8
Major Marketing Activities
and Decisions (3 of 4)
• Market Segmentation and Target Marketing
– Market Segmentation
– Target Markets
• Product Decisions
– Product Positioning
• Pricing Decisions
–
–
–
–
Leads to revenue and profit
Directly connected to customer demand
Easy to change
Major quality cue for customers
1-9
Major Marketing Activities
and Decisions (4 of 4)
• Distribution and Supply Chain Decisions
– Distribution and Supply Chain Management
– Supply Chain
• Promotion Decisions
– Integrated Marketing Communications (IMC)
• Implementation and Control
– Marketing Implementation
• Social Responsibility and Ethics
– Social Responsibility
– Marketing Ethics
1-10
Taking On the Challenges of
Marketing Strategy (1 of 2)
• Unending Change
– Customers change, competitors change, and marketing
organizations change
• Evolution of Marketing and Business Practices in
Society
• Increasing Demands of Customers
• Overall Decline in Brand Loyalty of Customers
• Increasing Price Sensitivity Among Customers
• Increasing Customer Cynicism about Business and
Marketing Activities
1-11
Taking On the Challenges of
Marketing Strategy (2 of 2)
•
•
•
•
Competing in Mature Markets
Little Real Differentiation Among Product Offerings
Increasing Expansion into Foreign Markets
Increasing Numbers and Strength of Foreign
Competitors
• Aggressive Cost-Cutting Measures in Order to Increase
Competitiveness
• Increasing Cooperation with Supply-Chain Partners and
Competitors
1-12