Transcript What is Marketing?

MT 219 Marketing
Unit Two
Marketing Environment and Market
Research
Agenda
• Review Unit 1
• The marketing environment
• Marketing Research
What is Marketing?
What is Marketing?
• Your e-book by Pride and Ferrell gave a
fantastic definition. It states, “Marketing is
the process of creating, distributing,
promoting, and pricing goods, services, and
ideas to facilitate satisfying exchanges with
customers and develop and maintain
favorable relationships with stakeholders in a
dynamic environment.”
The Marketing Mix and Environment
Summary – the Marketing Mix
The Marketer’s tool box – the Marketing Mix
• The product – anything that is offered to consumers for
their satisfaction
• The price – what consumers give up for the product
• The place – where, when and how consumers access
and possess the product
• Promotion- communication between the provider of the
product and the consumer
Relationships
Chapter 2
Planning
Planning as the process of anticipating future events and
conditions and determine the best way to achieve
organizational objectives.
Boon and Kurtz. Contemporary Marketing 2005. Page 39
Failing to plan is planning to ….!
Failing to plan is planning to fail!
Strategic Planning
• The process of establishing an organizational mission
and formulating goals, corporate strategy, marketing
objectives, marketing strategy, and a marketing plan.
Mission and Goals
What is a marketing plan?
• A written document that specifies that activities to be
performed to implement and control an organization’s
marketing activities. Pride and Ferrell
Assessment
SWOT Analysis
• Internal
- Strengths
- Weaknesses
• External
-Opportunities
-Threats
Core Competencies and Competitive
Advantage
• Core competencies are those
things a firm does extremely
well.
• Competitive advantage is the
result to a company’s matching
a core competency to
opportunities in the
marketplace.
SBU’s
• Most businesses have more than one product or
service. All these different products or units in a
diversified firm are referred to as SBUs or strategic
business units.
Market Share
Market share refers to the
percentage of sales you receive
from the industry you are
categorized.
BCG Matrix or Market Share/Market
Growth Matrix
MT 219 Marketing
Unit Two
The Marketing Environment and
Marketing Research
•Note: This seminar will be
recorded by the instructor.
The Macroenvironment
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Demographic environment
Economic environment
Natural environment
Technological environment
Political environment
Cultural environment
• Businesses are impacted by ALL of these forces.
The Marketing Mix and Environment
Economic Forces
• Buying Power
disposable income
discretionary income
• Willingness to spend
• Economic conditions and business cycle
recession vs. expansion
Political, Legal and Regulatory
• Regulatory Agencies
FTC
FDA
CPSC
FCC
EPA
Major Federal Laws: The Protection of
Competition
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Sherman Antitrust
Clayton
FTC Act
Robinson-Patman
Wheeler-Lea
Technological Forces
• Technology – the application of knowledge and tools to
solve problems and perform tasks more efficiently.
-most dramatic force today
-enables market fragmentation
Sociocultural Forces – Demographics
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Aging of the population
Increased diversity
Higher levels of education
Greater mobility
Changes in “family” structure
Natural Environment
• Looks at the raw resources and natural world conditions
that help or hinder the firm
• Raw resources used in products may be in short supply
or what is supplied may be in surplus
• Things like climate, natural disasters and man-made
disasters can impact the organization
Microenvironmental Actors
• The organization itself
• Suppliers
• Marketing Intermediaries
• Competitors
• Publics
• Customers
The Firm or Organization
• Marketing impacts many areas of an
organization
• Different functional areas and their capabilities
go into marketing planning
• All areas must realize the need to help in
marketing efforts
Suppliers
• Provide the materials and resources that
organizations use to provide product
• Resources must be provided in a timely way at
a cost and quality level required for the product.
Marketing Intermediaries
• Assist the organization getting products to
consumers
• Can be involved in a number of area, including
physical distribution, financing, marketing
services and reselling
• Importance of developing strong relationships
Competitors
• Almost no one is free of competition
• Need to monitor competitive actions
• Need to develop a systematic approach to competitive
evaluation
Publics
• Many times referred to as stakeholders
• Involve any group that may impact the
development of an organization’s strategies
• This is the reason why companies often need to
be actively engaged in public relations
Customers
• The entire rationale for an organization’s
existence
• For most companies, this actor represents its
sole source of revenue
• There is a need to establish long-term
relationships with this group
The importance of marketing research
• Enables marketers to understand consumers and meet
their needs
• Is the connection between marketers and consumers in
many ways
Marketing Research Process
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Defining the problem
Designing the research plan
Collecting data
Interpreting the findings from the data
Reporting findings in a timely manner
Secondary Data
• Advantages
readily available
less expensive
less time consuming
• Disadvantages
May be old
May not be in form required
May be incorrect
Primary Data Collection Approaches
• Observation
• Survey
• Experiment
Need to Assure Reliability and Validity as much as
possible
Sampling – from a population
• Probability – random, stratified, cluster sampling
• Non probability – quota, convenience, judgment
• Census- a complete count of the population
Basic Contact Methods
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Mail
Telephone
Online
Personal Interview
Questionnaire Construction – open ended vs. closed ended
Any Questions?
Thank you for attending!
See you next week!