Transcript 01Marketing

Marketing:
Building
Blueprints
for Business
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
 Durable Goods
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
 Durable Goods
 Services
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
 Durable Goods
 Services
 Retailers
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
 Durable Goods
 Services
 Retailers
 High Tech
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
 Durable Goods
 Services
 Retailers
 High Tech
 And more
 But they all have similar methodologies
and organizations.
&
Marketers Advertisers
This lecture covers:
The Marketing Function - 5 Ps
 The Marketing Department
 Organizational Structure
 Types of Jobs
 The Marketing Process
 Challenges for the Future
What is Marketing?
“Marketing is Everything
You Do to Help Sell a
Product/Service”
“Marketing is Everything”
 Marketing has become the dominant and
often most critical business function
 Manufacturing techniques and resources
are now less critical, often easy to obtain
 Brand equity and intellectual capital are
now more critical, harder to duplicate
 Business is evolving from manufacture of
goods to manufacture of “thinking”
“The Five P’s”
1. Product
 Product may be “tangible”
 Packaged goods
 Durable goods
 Product may be a service
 Product may be a combination
 Products are “bundles of benefits”
2. Price
 Key part of “value equation”
 At the price, product must have some
measure of “functional superiority.”
 Price must also contain margin
 For funding of necessary activities...
 and profit
 Price can send additional signals
 Can be a strategy in itself, or, more likely,
part of a strategy
3. Place (distribution)
 Similar products can make different
“place” decisions
 Example: Coffee
 Folgers
3. Place
 Similar products can make different
“place” decisions
 Example: Coffee
 Folgers
 Gevalia
3. Place
 Similar products can make different
“place” decisions
 Example: Coffee
 Folgers
 Gevalia
 Starbucks
4. Promotion
 A range of marketing communications
(MarCom) techniques can be used:
 Advertising
 Sales Promotion
 Public Relations
 Publicity
 Internet/New Media
 Direct Sales
 Direct Marketing
 Event Marketing
 Trade Shows
 Promotional
Products
5. People
 Some controversy over the fifth P
 Once, some said “packaging”
 One consultant says “personalization”
 Another says “playback”
 We say it’s “People.”
 Your customers
 Your own people
 Other “stakeholders”
 Sales Force, Trade, Suppliers
The Marketing Mix
 Demand
 Example: Price/Supply
 Marketing Variables
 Five P Variables
 Promotion Mix
Marketing Strategy . . .
Unique Combinations
Unique Marketing Strategies
 Example:
Early auto industry
 Ford - Product/Price
 GM - Product/Value
 GM - Multiple Brands
Unique Combinations
Unique Marketing Strategies
 Example:
Early auto industry
 Ford - Product/Price
 GM - Product/Value
 GM - Multiple Brands
 Example: Bose
 Promotion + Place
Direct instead of stores
Marketing Departments
2 Types of Organization
 Vertical Organization
 Traditional military “command” structure
 Clear lines of responsibility
 Seems to work best when there are
numerous similar products
 Horizontal Organization
 More fluid “ad hoc” structure
 Organize around needs and functions
Top Job Functions:
 For both types of organizations
 CEO, COO, CMO
 Chief Executive Officer
 Chief Operating Officer
 Chief Marketing Officer
 Top Marketing person
 CFO, CIO
 Chief Financial Officer
 Chief Information Officer
Vertical Organization
 Example: Oscar Mayer (KGF)
Consumer Products
V.P.
Marketing
Category Manag er
Lunch Pak
Brand
Manager
Ham
Brand
Manager
Turkey
Ass istant
Brand
Manager
Ass istant
Brand
Manager
Category Manag er
Hot Dogs
Brand
Manager
Ass orted
Brand
Manager
Main Line
Ass istant
Brand
Manager
Brand
Ass istant
Brand
Manager
Smokies
Category Manag er
Breakfast/New Products
Brand
Manager
New
Products
Brand
Manager
Bacon &
Sausage
Brand
Manager
New
Products
Ass istant
Brand
Manager
Ass istant
Brand
Manager
Brand
Ass istant
Horizontal Organization
 Example: McDonnell-Douglas (2 groups)
CEO
COO, Sr. VP
VP, F-15
VP, F/A-18
Marketing
Manager
Production
Manager
Finance
Manager
Advertising
Plant
Cost
Accounting
Trade Shows
Suppliers
Navy Customer
Customer
Foreign Customers
Customers
R&D
Manager
Marketing
Manager
Production
Manager
Finance
Manager
Advertising
Plant
Manager
Cost
Accounting
Trade Shows
Air Force
Customer
Marketing Job Functions
 Director of Marketing
 Often, trained w. “feeder system”
 P&G, KGF, etc.
 Has become COO career path
 Must manage increasing variety of MarCom
programs and suppliers
 Advertising Director
 Importance depends on size of budget
 May also have significant responsibilities
monitoring media spending
Marketing Job Functions
 Category Manager
 Group Product Manager
 Brand Manager
 Brand Assistant
 Other Staff Functions:
 Sales Promotion
 Media
 Market Research
 Field Marketing…
Bridgette Heller - from
Brand Manager Gevalia
to Category Manager for
Coffee at KGF
Field Marketing
 Excellent entry level job opportunity
 There are many marketers that operate
Field Marketing Organizations




Beverage Industry (Beer, Soft Drink)
Fast Food Industry
Franchise Organizations
In many cases, ad agencies that service these
marketers also provide Field Marketing
 “Think Global. Act Local.”
The Marketing Process
 Planning
 Implementation
 Evaluation
Planning
1. Setting overall marketing strategy
2. Developing annual marketing plan
3. Calculating annual marketing budget
4. Assigning marketing tasks (planning)
Implementation
4. Assigning marketing tasks (continued)
 After budgets approved, operations move
from the theoretical to the practical
 NOTE: Actual costs may vary from budget plans may need to be changed “on the fly”
5. Supervising internal functions
 NOTE: PR may be internal, external or both
6. Overseeing external services
 Advertising, sales promotion, etc.
 NOTE: Variety of MarCom program options
is growing
Evaluation:
7. Measuring and tracking efforts
 Sales Results
 Media Expenditures
 Awareness and Usage
 Ongoing Market Research programs
(tracking studies)
8. Reporting performance to management
 NOTE: May be daily, weekly, or quarterly.
Trend is for more frequent reporting
9. Integrating results into planning
 The cycle continues - working for
improvement wherever possible
Marketing Challenges:
 Increasing importance of marketing
 As mentioned, “Marketing is Everything”
the function is more important for everyone
 Hyper-Competition
 Too much capacity for size of market
 Happening on a global scale
 Examples: Automobiles, computers
 Fragmentation
 Consumers, Media, etc.
 Harder to do “mass” marketing