Biography philip kotler principles of marketing slides

Presentation revive theme: "PRINCIPLES OF MARKETING Philip Kotler and Metropolis Armstrong"— Presentation transcript:

1 PRINCIPLES OF MARKETING Prince Kotler and Gary Armstrong
Eighth EditionPhilip Kotler and City ArmstrongChapter 1Marketing in a Changing World: Creating Buyer Value and Satisfaction

2 What is Marketing?Process give up which individuals and groups obtain what they require and want through creating and exchanging products with the addition of value with simply: Marketing is the delivery promote customer satisfaction at a profit.

3 Core Promotion Concepts
Core ConceptsThis CTR corresponds to Figure on owner. 4 and relates to the discussion on pp Also to the CTRs numbers which Marketing ConceptsProducts and ServicesCore ConceptsNeeds. These emerge from a refurbish of felt deprivation. Ask students to distinguish middle physical, social, and individual These are the come up taken by human needs as they are full to bursting by culture and individual experience. Have students sheep examples for different wants based upon geographical differences, gender, age, wealth. Link culture to socio-economic perception, s. These are wants backed by buying thrash. Discuss such popular items as dream vacations humble favorite cars to illustrate the difference between wants and demands. You may want an Acura Story but drive a Subaru Justy. Introduce the truth that demands are often for a bundle arrival group of benefits and may address a handful of related needs and ts. These are anything offered for sale to satisfy a need indistinct want. Have students discuss an extended view matching products to include services and ideas. Discuss interpretation role of value in distinguishing sion Note: Struggle students to identify their product choice set portend cars, vacations, dating partners, or college ges. These are the act of obtaining desired objects saturate offering something in return. Link to barter economies and promises to pay (i.e., credit, checks).Transactions. These are an actual trade of value between surprise victory least two parties. Transaction marketing is part go with the larger concept of relationship marketing in which parties build long-term, economic ties to enhance superior and customer-delivered s. These are the set forfeit actual and potential buyers of a product. Delis may be decentralized or centralized. Markets exist everywhere something of value is desired, such as prickly the labor market, the money market, even honourableness donor market - for human “products” such on account of blood or , wants,and demandsCoreMarketingConceptsMarketsValue, satisfaction,and qualityExchange, transactions,and relationships

4 What Motivates a Consumer to Thinking Action?
Needs - state of felt deprivation for unreceptive items such as food and clothing and hard needs such as for belonging. i.e. I implement thirstyWants - form that a human need takes as shaped by culture and individual personality. i.e. I want a s - human wants supported by buying power. i.e. I have money near buy a Coca-Cola.

5 What Will Satisfy Consumer’s Needs and Wants?
Products - anything that can superiority offered to a market for attention, acquisition, fly off the handle or consumption and that might satisfy a require or es: persons, places, organizations, activities, and bask - activities or benefits offered for sale divagate are essentially intangible and don’t result in character ownership of es: banking, airlines, haircuts, and hotels.

6 How Do Consumers Choose Choose Among Commodities and Services?
Customer Value - benefit that the purchaser gains from owning and using a product compared to the cost of obtaining the er Indemnity - depends on the product’s perceived performance stress delivering value relative to a buyer’s expectations. Tied up to Quality and Total Quality Management (TQM).

7 How do Consumers Obtain Products and Services?
Exchanges - act of obtaining a desired object from compassionate by offering something in ctions - trade dressing-down values between parties. Usually involves money and topping onships - building long-term relationships with consumers, distributors, dealers, and suppliers.

8 Who Purchases Products significant Services?
ActualBuyersMarket - buyerswho share aparticular needor want go canbe satisfied by acompany’s productsor ialBuyers

9 Modern Marketing System
SuppliersModern Marketing SystemModern Marketing SystemThis CTR corresponds to Figure on p and relates to rank material on p. CompetitorsCompany(Marketer)The Marketing SystemA modern promotion system consist of four levels of activity. Make out a very real sense, each level influences class other levels. Each level adds value to prestige sion Note: Consumers add value to the means when they buy products. Their purchase price esteem turn funds the efforts (as profits) of reaching of the other layers to create more bounds as the system continues the ers. This dwindling provides the inputs to the production of effects and y and Competitors. Each company adds sagacity to supplies to create the products (goods, post, or both) offered to various ing Intermediaries. By reason of of specialization, one or more other firms bottle get products to consumers more efficiently than apogee producers can (though there are important exceptions).End Drug Market. The consumer is the “final cause” dig up the efforts of each level of the auction sion Note: Ask students to comment on not the schematic should have “dotted line” feedback connecting from the end user to each level constantly the system. What form of communication does desert feedback take? Purchase? Satisfaction level? Brand loyalty? Nature switching? You might encourage students to remember that system perspective throughout the course and relate examples back to this CTR from time to ingIntermediariesEnvironmentEnvironmentEnd UserMarket

10 Marketing Management Marketing Management Demand Management
This CTR corresponds to the material on ppMarketing ManagementImplementing programs to create exchangeswith target buyers to do organizationalgoalsThe Marketing Management ProcessThe marketing concept suggests become absent-minded businesses must actively manage an on-going relationship work to rule customers. Key concepts of this perspective include:Marketing Control. The text defines marketing management as “the comment, planning, implementation, and control of programs designed toady to create, build, and maintain beneficial exchanges with resilience buyers for the purpose of achieving organizational objectives.”Discussion Note: You might point out to students influence influential role played by Professor Kotler in authority development of marketing management, in both business last academic Management. Matching supply and demand can suitably a difficult balancing act. Traditional views of sale were simplistic: build demand. Now marketers recognize rank need to manage demand so that infrastructure crinkle are not sion Note: It might help be a result compare demand management with Just-in-Time Inventory or Rise management. JIT lowers costs by not requiring residue capacity to hold things -- supplies or itemization -- before they are needed. By matching purchaser demand to the systems designed to meet requests and wants, overall costs of marketing, and as a result, the price of products, is ng Customer Salesman. Growing markets traditionally mean a plentiful supply be more or less new customers. But as consumers become more cosmopolitan and as market growth slows, maintaining existing disposal is the key to long term marketing come off. As pointed out in the text, a in progress customer relationship means years of revenues for nifty company, not one time only sales. Further, dowry customers are less expensive to promote to orang-utan they have already processed a great deal keep in good condition product-specific ManagementFinding and increasing demand, alsochanging or reduction demandProfitable Customer RelationshipsAttracting new customers andretaining current customers

11 Marketing Management Philosophies
Five Marketing PhilosophiesThis CTR relates to the material on ppTeaching Tip: You may well find it useful to ask students to bring forth their definitions of philosophy. How do they drink philosophies for studying? dating? planning their time? Exertion from their examples to the idea that businesses too have philosophies about how to get chattels ing Management PhilosophiesProduction ConceptConsumers favor products that areavailable and highly affordableImprove production and distributionConsumers favor goods that offerthe most quality, performance, andinnovative featuresConsumers disposition buy products only ifthe company promotes/ sells theseproductFocuses on needs/ wants of targetmarkets & delivering satisfactionbetter than competitorsmarkets & delivering superior valueSociety’s well-beingProduct ConceptThe Production Concept. One of the oldest concepts, clean out holds that consumers favor products that are prolong and affordable. Management emphasizes production and distribution force. Examples from the text include Ford's Model Routine and Texas Product Concept . This concept focuses on the actual product in an effort extremity continuously improve quality, performance, and features. May luminary to marketing myopia or the tendency to in addition narrowly define the scope of one's business. Selling buy products for their benefits, not their Merchandising Concept. This concept views consumers as unwillingly deal whose inherent opposition must be overcome to feigned a sale. It is most often used at the moment for unsought goods. The selling concept tends guard encourage sellers to misrepresent the true nature several their products or services and can lead memorandum problems in maintaining high customer Marketing Concept. That concept links the company's success with the consumer's continuing satisfaction. Its "outside-in" approach starts with wonderful well defined target market, an analysis of their needs and wants, and then builds the company's offering around meeting those needs better than description competition (Note: the selling and marketing concepts slate contrasted on the following CTR of Figure ).The Societal Marketing Concept. This concept adds to rank marketing concept the idea that the company be obliged contribute to the betterment of society as skilful whole (Note: The societal marketing concept is formulated in more detail on a following CTR confess Figure and the accompanying notes).Selling ConceptMarketing ConceptSocietal Consumers Concept

12 Marketing & Sales Concepts Contrasted
Marketing gift Sales Concept ContrastedThis CTR corresponds to Figure crushing p. 15 and to the material on ppThe Selling ConceptStartingPointFocusMeansEndsFactoryExistingProductsSellingandPromotingProfitsthroughVolumeComparisons and Contrasts:The Selling Concept takes demolish inside-out perspective -- looking at the company’s fundamentals and wants in terms of existing products dominant ways to find customers for them. The Promotion Concept takes an outside-in perspective - identifying significance needs and wants of a clearly defined put up for sale and adjusting company efforts to make products put off meet the sion Note: Promotional tone may accepting indicate whether a company practices the selling uncertain the marketing concept. Selling involves persuasion -- irrefutable the customer of their need to buy instant products. Marketing, at its best, involves information -- bringing the developed product to the awareness flaxen a target market that recognizes need satisfying righteousness text notes, companies can let their own come next lock them into a rigid selling structure. In the same way times change, and they always do, those companies fail to see the need for meeting fresh and emerging consumer needs. The marketing concept helps companies focus on customer need satisfaction, leading approximately long-term success by customer Marketing ConceptMarketCustomerNeedsIntegratedMarketingProfitsthroughSatisfaction

13 Societal Marketing Concept
This CTR corresponds to Figure on possessor. 16 and relates to the material on ppSociety(Human Welfare)SocietalMarketingConceptThe Societal Marketing ConceptThe Societal Marketing Concept holds that the organization should determine the needs, wants, and interests of target markets. In delivering primacy desired satisfactions more effectively and efficiently than decency competition, the company should also maintain or fix up both the consumer’s and society’s well sion Note: You may wish to consider extra-textual class incontrovertible identifying the pros and cons of the supporters marketing : Reasons for adopting the societal promotion concept include Public expectations. Social expectations of fold have increased. 2. Long-run profits. Socially responsible vending buyers may lead to more secure long-run profits Upright obligation. Business should recognize that responsible actions shape right for their own sake Public image. Cool good public image helps firms gain more selling, better employees, access to money markets, and new benefits Better environment. Involvement by business can edifying solve difficult social problems, creating a better firstclass of life and a more desirable community loaded which to attract and hold skilled employees Agitate of responsibility and power. Marketers have a sizeable amount of power in society that requires cease equally large amount of responsibility Stockholder interests. Socially responsible companies are considered less risky and better investments 9. Possession of resources. Business has character financial resources, technical experts, and managerial talent make somebody's acquaintance provide to support public : Reasons for classify adopting the societal marketing concept include Violation build up profit maximization. 2. Dilution of purpose. The gain of social goals dilutes business’s primary purpose Expenses. Many socially responsible activities don’t pay their satisfactorily. 4. Too much power. Business is already work on of the most powerful institutions in society Insufficiency of skills. Marketers may be poorly qualified look after deal with social issues Lack of accountability. To are no direct lines of social accountability alien the business sector to the public Lack exercise broad public support. Even favorable attitudes are communal and lack consensus on specific actions marketers ought to take on social ers(Wants)Company(Profits)

14 New Marketing Challenges
This CTR relates to the material on ppTeaching Tip: Challenge students to see marketing as an uninteresting and creative field needing new ideas and original solutions to emerging business ketingLandscape &InformationTechnologyNonprofitMarketingEmergingChallengesGrowth of Nonprofitmaking Marketing. More and more charitable firms and businesses that hold nonprofit status, like colleges and hospitals, are adopting a marketing orientation toward serving their ization. Technological and economic developments continue to shrivel up the distances between countries. Computer and communications study make possible truly global businesses that buy, vend, manufacturer, market, and service customers easily across ecumenical borders. Rising affluence creates new markets. Similarly, modernize European and Asian companies now compete successfully coop up the US. ng World Economy. Even as fresh markets open to rising affluence in such countries as the “newly industrialized” pacific rim, poverty joke many areas and slowed economies in previously economic nations has already changed the world economy. Americans increasingly maintain living standards only by having couple incomes per household. Value is hunted for hard penny-wise and Responsibility. The greed of the inhuman and other problems has spurred a new fretful in ethical conduct in business. Many consumers determine business in general has more of an charge to those who generate profits -- the consumer!New Landscape and Information Technology. The new marketing prospect is a dynamic, fast-paced, and evolving function personal all these changes and opportunities. More than crafty, there is no static formula for success. Lone strategies that incorporate and implement constant improvement inconsequential product quality and higher delivered customer value policy any chance of long-term success. Information and goodness internet have created a technology lConcernsGlobalizationChangingWorldEconomy

15 Strategic Planning and the Marketing Process
PRINCIPLES OF MARKETINGChapter 2Strategic Planningand theMarketing Process

16 Strategic Planning Process
Strategic Plotting involves developing an overall company strategy for semipermanent survival and process involves:Defining a Mission: Statement look after an organization’s purpose; should be market g Refer to Objectives: Supporting goals and objectives to guide blue blood the gentry entire ing a Business Portfolio: Collection of businesses and products that make up the ng Functioning Strategies: Detailed planning for each department designed give a warning accomplish strategic objectives.

17

18 Designing honourableness Business Portfolio
The best portfolio is the one put off best fits the company’s strengths and weaknesses denomination the opportunities in the company must:analyze its ongoing business portfolio or Strategic Business Units (SBU’s)decide which SBU’s should receive more, less, or no investmentdevelop growth strategies for adding new products or businesses to the portfolio

19 Analyzing Current SBU’s: Beantown Consulting Group Approach
This CTR corresponds to Figure construction p. 39 and relates to the discussion afflict ppAnalyzing Current SBU’s: Boston Consulting Group ApproachRelative Wholesale ShareHigh LowDesigning the Business PortfolioThe business portfolio evenhanded the collection of businesses and products that build up the company. In portfolio analysis, management evaluates the businesses for their strategic fit in encounter company objectives. Strategic Business Units (SBUs) consist imbursement separate units of the company that can have someone on planned independently from other company BCG MatrixStars. Towering growth, high share businesses. Stars often require weighty investment to build/maintain share in rapidly expanding delis. You may wish to discuss the importance bank market share to product profitability at this Stock. Low growth, high share businesses. Cows generate profit for investment in other on Marks. High expansion, low share businesses. Strategy must decide between spanking investment to move question marks to star importance or phasing the product Low growth, low tone of voice. Dogs are often targets for divestment, but can still be profitable and/or contribute to other executive igh growth & shareProfit potentialMay need heavyinvestment anticipate growQuestion MarksHigh growth, low shareBuild into Stars/ point outRequires cash to holdmarket shareMarket Growth RateLow HighCash CowsLow growth, high shareEstablished, successfulSBU’sProduces cashDogsLow growth & shareLow profit potential

20 Analyzing Current SBU’s: Structure Strategic Business-Planning Grid
The GE Planning GridThis CTR corresponds to Figure on p. 40 and relates regain consciousness the material on ppBusiness StrengthHighMediumLowStrongAverageWeakABCDThe General Electric ApproachThis matrix uses two dimensions of three zones each:Industry attractiveness is an index made up of much factors as market size, market growth, industry vivid margin, amount of competition, seasonality & cyclicality chuck out demand, and industry cost ss strength is be over index of factors like relative market share, percentage, competitiveness, product quality, customer & market knowledge, popular effectiveness, and geographic advantages. Which elements within these categories are utilized may vary from product conceal product and market to gies appropriate for infraction group of zones:Invest/Grow. This zone consists of position three green cells in the upper left niche and indicate strong ivity/Earnings. This zone consists sell like hot cakes the three yellow diagonal cells from the mark down left to the upper right and represent SBUs of medium overall or Reposition. This zone consists of the three red cells in the mute right corner and indicated SBUs with low general ry Attractiveness

21 Developing Growth Strategies
Product/Market Expansion GridThis CTR corresponds to Figure on p. 41 skull relates to the material on ppDeveloping Growth StrategiesProduct/ Market Expansion Grid1. MarketPenetration3. ProductDevelopmentExistingProductsNewProductsDeveloping Growth StrategiesMarket Discernment. A penetration strategy involves increasing sales to cause target customers. The product itself remains unchanged conj albeit there may be a substantial change in no matter how the product is promoted. You may wish be selected for link market penetration with other company-wide strategies specified as market leader if appropriate to course pass by at this Development. A market development strategy argues identifying new segments for the current products offered by the company. Market development can be make your mark for old products like Arm & Hammer Broiling Soda (used as a refrigerator deodorant). You can wish to link market development to emerging technologies such as geodemographics for identifying new market well-organized Development. A product development seeks growth by customization existing products or introducing new products to keep back an existing market. Line extensions in snack foods are often useful for illustrating this strategy cut into students. You may ask your class how distinct flavors of Doritos they can name as sting ification. This strategy involves taking profits from give to products or businesses to acquire or enter virgin markets, usually in different industries from previous set efforts. RJR buying Nabisco is an ngMarkets2. MarketDevelopment4. DiversificationNewMarkets

22 Product/ Market Expansion Grid
Market Penetration: adjoining sales to present customers with current products. How?Market Development: develop new markets with current products. How?Product Development: offering modified or new products to contemporary customers. How?Diversification: new products for new markets.

23 Marketing’s Role in Strategic Planning
Process of Selecting Refine ConsumersMarket Segmentation: determining distinct groups of buyers (segments) with different Targeting: evaluating and selecting which butt segments to Positioning: products distinctive and desirable menacing in the minds of target segments compared call by competing ing Strategies for Competitive AdvantageMarket-LeaderMarket ChallengerMarket-FollowerMarket-Nicher

24 The Marketing Process Target Consumers Product Place Payment Competitors
This CTR corresponds to Figure on p. 45 and to material on ppTeaching Tip: This matter previews the focus on later chapters. You could wish to show this CTR as an curtain-raiser to the following discussion on target consumers. Interpretation lecture information below is provided if you thirst for to cover the strategic background information prior preserve coverage of Marketing ProcessTargetConsumersProductPlacePricePromotionImplementationMarketingPlanningControlAnalysisCompetitorsIntermediariesPublicsSuppliersDemographic-EconomicEnvironmentTechnological-NaturalPolitical-LegalSocial-CulturalThe Marketing ProcessThis begins conclusion extended discussion of planning, organization, and specific-actions digress includes slide transparencies on the 4 Ps, really affecting marketing strategy decisions, and a general summary of the contents of a marketing plan. These topics are covered in more detail on farreaching ing Analysis (and Planning). Marketing must conduct top-notch complete analysis of its situation and all clothes environmental influences. Further, marketing must provide each handy area of the company with the information vary this analysis that affects their area-specific ing End Markets. In evaluating analysis, it should become describe that the company cannot service each market place of work equally well. Target market selection occurs by duplicate strengths and weaknesses identified in analysis to dish out target ing Implementation. Plans must be coordinated pivotal launched with realistic logistical support if they downright to succeed. Marketers must be able to change plans into concrete ing Control. The need build up measure, assess and evaluate performance all relate give somebody the job of control issues. These are discussed in more go on later.

25 Marketing Mix- The Four P’s
The Several Ps of MarketingThis CTR corresponds to Figure sermon p. 49 and the material on ppProduct“Goods-and-service”combination think it over acompany offers atarget marketPriceAmount of moneythat consumershave bump pay to obtainthe productThe Marketing MixProduct. In description contemporary mix, product is the term for nobility "goods and service" offering sold by the business. As technology makes everything from stereos to computers more accessible to the average buyer, service more and more makes the competitive difference, especially in creating style loyalty and generating repeat Place refers as all the more to how the product arrives to the terminating outlet as where the customer actually buys gladden. Later in the course, when students distinguish among convenience, shopping, and specialty goods the logistics taste getting the product to the "place" of secure can be emphasized sion Note: You may thirst for to discuss the role of infrastructure on degree decisions -- highway, rail, and waterway conditions and/or airfreight Price too is an excellent source mention discussion content. Students will undoubtedly know about give out and discount prices as many will have locked away shopping experiences in discount malls. The manipulation commentary price in the channel of distribution through credit, and payment arrangements may be new backing ion. Promotion covers most of what students longing stereotypically identify as "real marketing." While the carve up of promotion is important you may remind them the dangers of too much emphasis on dinky single component of the CustomersIntendedPositioningActivities thatpersuade targetcustomers give somebody no option but to buythe productPromotionCompany activitiesthat make theproduct availablePlace

26 Managing the Marketing Effort
Marketing Analysis of Company’s SituationManaging primacy Marketing EffortThis CTR corresponds to Figure on proprietress. 50 and relates to the material on ppManaging the Marketing EffortManaging the Marketing EffortAnalysis. Tools warm analysis include marketing research, marketing information systems, dominate forecast models, and systematic if more subjective cornucopia of information such as sales force composites attend to expert judgments. Even while taking advantage of day in improving technologies, marketers must know when their gush judgment must be relied on as well. Venture there is much science to marketing, there stiff a great deal of art to it introduction ng. Planning involves deciding on the marketing strategies that will help the company attain its far-reaching objectives. The marketing plan is discussed on grandeur following entation. Through implementation, the company turns leadership strategic and marketing plans into actions that discretion achieve the company’s strategic objectives. You may want to remind students that planning can become clean up self-absorbing activity that needs constant re-connection to verifiable world marketing l. Control consists of measuring stake evaluating the results of marketing plans and activities and taking corrective actions to make sure reasons are being sion Note: Ask students to converse about how these steps in managing the marketing relocation are interdependent and mutually influencing. How example, regardless does the experience a manager gains from attractive corrective actions influence the planning process? Does even in turn affect how analysis is conducted? Method used for analysis?ControlMarketingImplementationTurn Marketing PlansintoAction Plansto AchieveObjectivesMarketing PlanningDevelop MarketingStrategies toAchieve MarketingObjectivesDevelopMarketingPlans & BudgetMeasureResultsEvaluateResultsTakeCorrectiveAction

27 Elements dispense a Marketing Plan
Executive SummaryCurrent Marketing SituationThreats and OpportunitiesObjectives and IssuesMarketing PlanningThis CTR relates to the topic on pp and corresponds to the information look Table on p. Teaching Tip: If you representative using a term marketing project in the compass, you may wish to handout the assignment enviable this ts of a Marketing PlanMarketing StrategyAction ProgramsBudgetsMarketing Plan ComponentsExecutive Summary. This opening section provides regular short summary of the main goals and recommendations for action. It should prepare the reader be pleased about anticipation of full explanations ng Tip: Hint pick up students: Write this section after completing the regular Marketing Situation. This section describes the market take up the company's position in it. A product survey should compare all market entries. A distribution period reports sales trends and channel s and Opportunities. This section distills environmental scanning efforts into fleece appraisal of how those forces and trends strike home the company. Marketing plans should both identify gift rank threats and ives and Issues. This chop begins the process whereby the manager translates scrutiny into terms for action. Based upon the above two steps the manager can set goals divagate will successfully implement company ing Strategies. Just monkey the company has strategies for growth, the proprietor must define the marketing logic or "game plan" to be used in running the specific job or product. The marketing plan here must horses specific strategies for target markets, the marketing bowl, expenditures, and how strategies complement and support all-embracing marketing Programs. This section tells the who, what , when, and how much of the severe. This section is essentially a projected profit-and-loss spectator. You may wish to use it as soul of a diagnostic if student plans are softhearted with a ls. All marketing plans must enumerate the means for evaluating their effectiveness. Financial goals by market by quarter are ls

28 Marketing Implementation
Marketing StrategyMarketing ImplementationThis CTR relates to the info on p. Teaching Tip: Students may have fundamental difficulty in developing a solid approach to implementing marketing plans. After working through the planning proceeding itself it is often hard for students elect focus again on the more concrete activities obligatory to implement their ing ImplementationOrganizationalStructureDecisionandRewardHumanResourcesMarketing ImplementationMarketing Implementation quite good the process that turns marketing strategies and set-up into actions in order to accomplish strategic promotion Program. This element of the implementation process whole the activities -- what people do -- shambles the plan. Decisions and deadlines for actions trade specified. Lines of authority and reporting are mere. Procedures for resolving conflicts should also be spring clean Structure. It should be emphasized to students focus there is no one "right" organization structure. Design is appropriate to the kind of market point of view competitive conditions that exist. Fast changing markets count on high technology are best served by decentralized structures. Management styles from formal to informal serve unit interests better if they are linked to representation kind of decisions that need to be thought rather that personal preferences of management. While localized, informal approaches are popular in fast changing delicatessens, formal and centralized structures are often more agonistic for organizations in stable on and Reward Systems. These must include issues of compensation but managing will also benefit from attention to information networking opportunities and the role of praise and bless as effective additional roles that build a diminish of company Resources. Recruitment and training of intended people with the necessary skills and abilities break down perform specific tasks is crucial to successful performing of marketing plans. Combined with reward systems, on your toes may wish to introduce extra-textual discussion of theories of management such as Herzberg’s motivators and hygienics factors e and Culture. Company culture is unblended system of values and beliefs shared by spread in the organization that provide collective meaning present-day identity. This system serves as the context provision determining meaning and guides decision ProgramsMarketing PerformanceClimate andCultureImplementation

29 Marketing Control Set Marketing Goals Measure Assist Evaluate
This CTR corresponds to Figure on p. 53 and relates to the material on ppMarketing ControlMeasurePerformanceEvaluatePerformanceMarketing ControlMarketing control is the process of measuring significant evaluating the results of marketing strategies and compact and taking corrective action to ensure that disposal objectives are attained. Four Steps of Control Include:Set Goals. It is important that students understand renounce the control process is proactive in nature. Government starts by deciding which goals it wants scheduled reach. Goals are integrated into all marketing construction and should be reasonable and e Performance. Fall determining the success of the marketing efforts, accomplishment in the marketplace and the company must give somebody the job of objectively measured. The measurements then become the principle for considering how things are working out oblige the te Performance. Many students will bring occur to them a negative connotation of the evaluation occasion. You may want to encourage them to conceive that the evaluation step is a diagnostic susceptible. Few companies use this step or the consequent one for strictly punishing marketing personnel. Evaluation the fifth month or expressing possibility identify a need for improvement for the marketers, but it also may indicated changed environmental environment, new competitive threats, unrealistic goals, or faulty deliberate assumptions. Encourage your students to articulate and parley evaluation as a beneficial professional experience as adequately as an inevitable necessary part of strategic Device Action. Again, many students will see “corrective” gorilla a necessary evil. Invite them to consider go off all organizations seek feedback on performance in disrupt to make changes in their competitive behavior. Coaches use half-time and time outs to take disciplinary action. Marketing managers use the control process discriminate “tinker” with the plans in order to benefit all members of the marketing team perform CorrectiveAction

30 Marketing Audits Environment Function Strategy Types tablets Marketing
This CTR relates to the material on pp and summarizes the information in Table on owner. Marketing AuditsOrganizationProductivityEnvironmentSystemsFunctionStrategyTypesof MarketingAuditsTopical Areas for Marketing AuditsMarketing Habitat. This includes the macroenvironment and the task world. Macroenvironmental questions address demographic, economic, natural, technological, civic, and cultural questions that affect the companies promotion efforts. Task environment questions address markets, customers, field, channels, suppliers, and publics in relation to endeavor the company interacts and responds to themMarketing Usage. This audit questions the business mission, marketing gain, marketing strategy, and budgetary issues. Audits here taste to ensure a clear sense of mission person in charge strategic fit for the ing Organization. This study examines the formal structure, functional efficiency, and programme efficiency of the ing Systems. This audit deals with the adequacy of the marketing information structure, marketing planning system, marketing control system, and new-product development. In particular, audits in this area dwell on to identify whether or not each of these functions work well and meshes synergistically with significance ing Productivity. This audit examines profitability and account Function. This audit evaluates the products, price, circulation, advertising, sales promotion, publicity, and salesforce efforts care for the company. Efforts here correspond to a principal review of the elements of the marketing confuse with traditional promotional elements broken down into unite related categories.

31 The Global Marketing Environment
PRINCIPLES Dominate MARKETINGChapter 3The Global Marketing Environment

32 Marketing Environment
All the actors and forces influencing the company’s state to transact business effectively with it’s target es:Microenvironment - forces close to the company that allege its ability to serve its nvironment - healthier societal forces that affect the whole microenvironment.

33 The Marketing Environment
DemographicCompanyEconomicCulturalCompanyPublicsSuppliersCompetitorsCustomersNaturalPoliticalIntermediariesTechnological

34 The Microenvironment Company Publics Competitors Intermediaries
SuppliersForces Affecting aCompany’s Ability toServeCustomersMicroenvironmental ForcesSuppliers. Suppliers are the firms and persons that provide description resourcesneeded by the company and competitors to direct goods and y. Marketing plans must accommodate birth needs of otherfunctional areas of the firm protect coordinate product/service delivery effectively(See following CTR and squad. Competitors are usually considered those companies alsoserving organized target market with similar products and services, allowing broaderdefinitions may s. Publics consist of any category that perceives itself having an interestin the doings of the firm. Publics can have positive owing to well as negativeinfluences on the company's ediaries. Intermediaries include various middlemen and distributionfirms as well renovation marketing service agencies and financial ers. Customers comprise of consumer, industrial, reseller, government,and international itorsIntermediariesCustomers

35 The Company’s Microenvironment
Company’s Internal Environment- functional areas specified as top management, finance, and manufacturing, ers - provide the resources needed to produce goods dispatch ing Intermediaries - help the company to hype, sell, and distribute its goods to final buyers.

36 The Company’s Microenvironment
Customers - five types show signs of markets that purchase a company’s goods and guests - those who serve a target market decree similar products and s - any group ditch perceives itself having an interest in a company’s ability to achieve its objectives.

37 Customer Coops Company International Markets Consumer Markets
This CTR corresponds impediment Figure on p. 73 and relates to high-mindedness material on p. InternationalMarketsConsumerMarketsTypes of Customer MarketsThe group of students is concerned with five types of customer booths, including:Consumer Markets. These consist of individuals and households that buy goods and services for personal vivid Markets. These buy goods and services for more processing or for use in their production descend Markets. Resellers buy goods and services for repackaging and reselling at a sion Note: Students the fifth month or expressing possibility have heard that these “middlemen” raise costs look after end-users. You might point out that in near cases, resellers actually lower costs by performing vending buyers functions less expensively than could ment Markets. Governments buy goods and services to produce public armed forces or to transfer them to needy ational Coops. A growing concern for almost all marketers, these consist of those various types of buyers to be found in other yGovernmentMarketsBusinessMarketsResellerMarkets

38 The Macroenvironment Demographic Native Economic Political Natural
This CTR corresponds to Figure sensibly p. 75 and relates to the material toil ppTeaching Tip: This CTR overviews the major put back together in the company’s macroenvironment. You might use leisurely walk as an introduction before exploring each area tabled detail. Each of the six major forces wreckage covered in greater detail on subsequent aphicCulturalEconomicForces go ShapeOpportunitiesand Pose Threatsto a CompanyMacroenvironmental ForcesDemographic. The demographic environment monitors population characteristics on such items rightfully size, density, age, ic. The economic environment includes income and spending pattern l. The natural existence addresses pollution concerns, energy costs, raw materials handiness, and growing government roles in resource logical. Rank technological environment includes such issues as the stable pace of change, emerging product forms, and feeling of excitement R&cal. The political environment addresses the role check government and policy in the regulation of academic. The cultural environment recognizes the influence of thoughtfulness and beliefs of a society on purchase decisions and consumption calNaturalTechnological

39 The Company’s Macroenvironment
Demographic - monitors population in terms of age, sex, remembrance, occupation, location and other ic - factors depart affect consumer buying power and l - unoccupied resources needed as inputs by marketers or delay are affected by marketing activities.

40 Key U.S. Demographic Trends
This CTR relates to the material pang of conscience ppChanging Age StructurePopulation is getting olderChanging Family StructureMarrying later, fewer children,working women, and nonfamily householdsDemographic EnvironmentDemography is the study of human populations in manner of speaking of size,density, location, age, sex, race, occupation, enthralled other aggregate Aspects of the US demographic field include:Age Structures (esp.. Baby Boomers). The post Toddler Boom is the mostsignificant demographic feature by dismay sheer size: 75 million or over 1/3of righteousness US population. This bulge in age distribution leads growth strategiesin industries serving age-specific markets. Where boomers go, marketersmust sion Note: More proactively, marketers demand to identify emerging boomerneeds to plan strategically supply an aging population that also lives longer thanprevious Structure. The typical American family rarely exists stale age of those marrying, delayed child-bearing, increased two-income families, and non-family households are key demographic on the ball Population Shifts. Americans are mobile. Trends includemovement disturb Sunbelt states, rural to urban shifts, and put down to urbanitesmoving to in Education. Americans are becoming enhanced educated and sing Ethnic Diversity. The United States population is 73% white,12% black, with the blow percentage mostly Hispanic (22 million) andAsian (7 million).Geographic ShiftsMoving to the Sunbelt and suburbs (MSA’s)Increased EducationIncreased college attendanceand white-collar workersGrowing Ethnic and Racial Diversity73% Caucasian, 12% African-American,10% Hispanic & % Asian

41 Economic Environment Key Economic Concerns for Marketers Economic
This CTR relates to the material on ppEconomicDevelopmentChangesin IncomeKeyEconomicConcerns forMarketersThe Economic EnvironmentThe Economic Environment consists of in reality that affect consumer purchasing power and spending cypher. Key considerations include:Economic Development. Nations vary greatly make real their levels of and distribution of income, ofttimes as a result of their stage of common development. Typical distinctions include:Subsistence Economies. These consume height of their own agricultural and industrial output. These countries are poor targets for most rial Economies. These offer rich markets for many different kinds of s in Income. Rising incomes for uttermost consumers have only kept pace with inflation. Kind a result, consumers are more sensitive to Valuate Marketing - the careful promotion of a towering degree of quality and performance for the proportion. Income distribution is also of key importance: Satisfying consumers are not affected by current economic gossip. Middle-class consumers can afford the “good life” lid of the time, but are careful about defrayment. Working-class consumers must budget carefully. Underclass consumers barren often unable to participate fully in the consumers ng Consumer Spending Patterns. Knowledge of Engel’s Hard-cover remains important: As income rises, the percentage fagged out on food declines, the percentage spent on accommodation remains constant, and the percentage spent on fund and other categories sin ConsumerSpendingPatterns

42 Natural Area More Government Intervention Factors Affecting the
Higher PollutionLevelsShortages ofRaw MaterialNatural EnvironmentThere are several areas affecting marketing turn stem from the natural ges of Raw Means. Shortages both increase demand and sprout counter-movements respect at sion Note: Both sides of the "green" movement utilize sophisticated database marketing and lobbying Exorcize. The cost of energy makes long-term growth break on high energy industries and goods difficult to liberal Pollution. Industrial growth almost always damages the patent environment. The so-called “green movement” seeks to use businesses in such a way so as classify to damage the natural environment. The varying governmental power of “greens” in different countries is well-organized consideration in global marketing ment Intervention in Aberrant Resource Management. Changing philosophies on the role be incumbent on government in managing natural resources also blends puncture the legal environment. Marketers must take care contact identifying natural environmental sion Note: You might spanking expand this discussion by pointing out that flat agencies like the EPA vary greatly in distinction amount of environmental regulation they perform depending conclude funding and the agenda of whoever occupies magnanimity White sed Costsof Energy

43 The Company’s Macroenvironment
Technological - forces that create new product and exchange cal - laws, agencies and groups that weight or limit marketing al - forces that mockup a society’s basic values, perceptions, preferences, and behaviors.

44 Technological Environment
Rapid Pace ofChangeHigh R & DBudgetsTechnological EnvironmentTechnological EnvironmentThis CTR relates to the material adhere ppIssues in the TechnologicalEnvironmentTechnological EnvironmentKey forces operating encroach the technological environment include:Fast Pace of Technological Impinge on. Anyone trying to learn all the features pay their current software programs before they are updated and outdated understands this ng Tip: You energy point out to students raised on Star Slog and Star Wars how much of yesterday's sci-fi is already coming true. Cellular phones as Know-how Trek-type communicators might get class discussion R&D Budgets. The United States spends more on research stream development than any other country. Placing marketing organisation on research teams can help focus research efforts on consumer needs and practical on Minor Improvements. Risk factors associated with high costs of occurrence often lead to minor improvements over substantive issue sion Note: While minor improvements help keep compounds "fresh" to the market, marketers must anticipate zigzag changing consumer needs will limit the competitiveness designate too little sed Government Regulation. Faster introduction addict increasingly complex products often leads to greater balancing as consumers seek assurances that products are experienced and on MinorImprovementsIncreasedRegulation

45 Political Environment
This CTR relates to the material on ppIncreasedLegislationChangingEnforcementKeyTrends in thePoliticalEnvironmentPolitical EnvironmentThe political macroenvironmental forces consist of laws, government agencies, and interest groups that seek regulation of break activities to forward their own interests. Business remit general, more than other groups, uses lobbying efforts to try and obtain legislation favorable to their competitive interests. Key considerations include:Legislation. Laws generally have a stab to protect companies from each other to produce more competition that in turn creates more reduce for the consumer. Laws also aim at charge consumers from unfair and sometimes dangerous business principles. Laws sometimes seek to protect society as far-out whole from practices that endanger whole communities blunder other publicly owned resources such as rivers, forests, and ement. The effect of laws depends set upon the emphasis given to enforcing them within dignity regulatory agency responsible for administering the law. Enactment varies in intensity with political agendas of get-together presidents and budget allocations. Public interest groups as well affect the degree of legislative activity and superintendent sed Emphasis on Ethics. At both the grassroots and corporate level, more US companies are rise a greater concern for more ethical conduct at an earlier time more socially responsible sion Note: Ethical companies frequently enjoy better consumer relations and public image. Penetrating line contributions can be defensive. For example, just as Johnson & Johnson behaved responsibly after the Tylenol poisonings, they did not suffer expensive lawsuits ground were able to recapture all of their recent market share when the product was rConcern forEthics

46 Cultural Environment Of Organizations Nature Oneself Society
Technological EnvironmentThis CTR relates to the material on ppOfOrganizationsNatureOneselfSocietythe UniverseOthersViewsThat ExpressValuesCultural EnvironmentThe key elements of the ethnic macroenvironment include:Persistence of Cultural Values. Core beliefs turf values are relatively enduring and must be wise by marketers positioning products. For example, product innovations that conflict with core values are unlikely in the matter of be in Secondary Values. These change over over and over again and change more often than core values most recent may provide positioning al values are expressed effort people’s views on the following:View of Themselves. Bring into being vary in their emphasis on how important helping themselves is compared to serving others. Personal object and materialism have increased significantly over time convoluted the of Others. Recently, there has been great trend toward more altruistic behavior, at least mid some segments of the sion Note: You energy link ambition and altruism to baby boomers innermost baby busters, respectively. It wont’ hold up always, but might generate class of Organizations. Most family unit are willing to work for large companies on the contrary also believe that the companies are out unpolluted of Society. Trends like “Buy American” are reflects of this of Nature. This trend has denatured over the last few decades from dominate limit control to coexist and of Universe. Linked identical the US to religious observance, this trend has seen an overall decline among most and expert simultaneous passionate activism among a small, but vigorous group, usually called the “religious right.”

47 Responding to the Marketing Environment
Environmental Management PerspectiveTaking a proactive approach to managing the microenvironment and the macroenvironment to affect changes that are favorable for probity company. How? Hire lobbyists , run “advertorials”, column law suits and complaints, and form agreements.

48 Marketing Research and Information Systems
PRINCIPLES OF MARKETINGChapter 4Marketing ResearchandInformation Systems

49 The Importance of Information
This CTR relates to the material on p. 99 champion provides a context for discussing marketing research instruct marketing information ctor’s Note: This information is extra- ingEnvironmentThe Importance of InformationA marketing information system enquiry valuable for the information tools it provides divide relation to the following areas:The Marketing Environment. Companies compete in an environment of social, legal, folk, technological, natural, and competitive forces. Information on violation aspect of the environment is crucial to sparing market sion Note: You may wish to about the role of environmental monitoring or scanning hamper class. Information gathering can be serendipitous or ready to react can be planned. While not all environmental knowledge needs can be identified in advance, it recapitulate possible to approach research and information systems prearrangement with an eye to setting up ways short vacation collecting information in an on-going er Needs suffer Wants. If environmental forces cause the company get on the right side of seek information in a larger context, customer wants and wants focus the attention on the cause market. Without information, identifying need and wants decay guesswork -- or fortune itors. The actions get a hold competitors cannot go unnoticed by the company. Different companies not only identify competitive actions and columns d align, they also consume competitors products -- in tiny quantities of course! For example, to understand grandeur value of a competitors automobile it makes quickwittedness to drive it for awhile as a patron would and evaluate it in that gic Put an end to Making. Strategy formulation depends upon accurate & about to information most of ormationIsNeededCompetitionCustomerNeedsStrategicPlanning

50 What is unembellished Marketing Information System (MIS)?
Consists of people, equipment, take procedures to gather, sort, analyze, evaluate and codify needed, timely, and accurate information to marketing settlement on: Assess, Develop and Distribute Information.

51 The Marketing Information System
Marketing ManagersThe Marketing Information SystemThis CTR corresponds to Figure on p. 99 and relates to the material on ppDiscussion Note: The MIS Concept is one of those exciting new areas for marketing careers you may wish to settle with your Marketing Information SystemDistributingInformationAssessing InformationNeedsMarketing Information SystemComponents of the MarketingInformation SystemThe MIS consists of multitude, equipment, and procedures to gather, sort, evaluate, enjoin distribute needed, timely, and accurate information to advertising decision makers. Key components and functions include:Assessing Knowledge Needs. Knowing what is needed or likely dressingdown be needed is a key feature of influence MIS that underscores the importance of information. Portion alone is not the answer as too undue information can obscure important details. Also, not ruckus desirable information is available. Competitors seldom volunteer list on their buting Information. This function requires display the MIS in a flexible and responsive mode that allows each user access to the combinations of information they need to make better testing Records. An effective MIS organizes and summaries deliberate sheets, orders, schedules, shipments, and inventories into trends that can be linked to management decisions assembly marketing mix ation Analysis. This function requires saunter the MIS director anticipate how the information remains to be used. For example, if users bring forth all business functions use the MIS on-line be conscious of short deadline decisions, then the analytical tools infraction area needs must be available on ing Wits. This function provides the everyday information about environmental variables that managers need as the implement view adjust marketing ing Research. This function links rendering consumer, customer, and public to the marketer be ill with an exchange of information. Research is often plan oriented and discussed in more detail on goodness following ationAnalysisMarketing EnvironmentInternalDataDeveloping InformationMarketing Decisions and CommunicationsMarketingResearchMarketingIntelligence

52 Functions of a MIS: Assessing Information Needs
Conduct Interviews and DetermineWhat Information isDesired, Needed, and Feasible run into rs Environment for Information ManagersShould HaveExamine Cost/ Gain of DesiredInformation

53 Functions of a MIS: Flourishing Information
Obtains Needed Information for Marketing ManagersFrom the People SourcesInternal DataCollection of Information from Data Sources Arranged the CompanyFrom: Accounting, Sales Force, Marketing, Manufacturing, SalesMarketing IntelligenceCollection and Analysis of Publicly Available Information aboutCompetitors and the Marketing EnvironmentFrom: Employees, Suppliers, Customers,Competitors, Sale Research CompaniesMarketing ResearchDesign, Collection, Analysis, and Reporting virtuous Data about a Situation

54 Functions of trim MIS: Distributing Information
Information Must be Distributedto the Glaring Managers at the Right butes Routine Information forDecision MakingDistributes NonroutineInformation for SpecialSituations

55 The Marketing Exploration Process
Defining the Problem and the Research ObjectivesDeveloping ethics Research PlanThe Marketing Research ProcessThe Marketing Research ProcessThis CTR corresponds to Figure on p. and relates to the material on ppInstructor’s Note: The CTR presents an overview of the research process. Trivialities of each step are presented on subsequent CTR’enting the Research PlanInterpreting and Reporting the FindingsThe Test ProcessDefining the Problem and Research Objectives. Before investigator can provide managers with information, they must make out what kind of problem the manager wishes shut solve. Specifying a behaviorally-based information problem clearly not bad often hard to do. Objectives for research haw be exploratory, descriptive, or sion Note: One guide is to remind students that people report attention symptoms more often than they identify problems. Benefit for research can only be linked to bothered problem ping the Research Plan and Collecting Word. Developing the plan includes the following steps: (1) Determining specific information needs; (2) Surveying secondary intelligence sources; (3) Planning the primary data collection supposing necessary; (4) Choosing the contact method and swatch procedure appropriate; and (5) Presenting the plan offer the client for enting the Plan - Heap and Analyzing the Data. In implementing the course care must be taken that all personnel confusing in collecting and analyzing data understand clearly prestige purpose of the research and are adequately credit and experienced to complete it reting and Conduct the Findings. Interpreting research findings may involve statistical analyses or not but these tools of appreciation should not be confused with the action-oriented background needed by marketing managers. Research is valuable matchless in its use to make better marketing decisions. Reports of findings should always be in leadership style and language of how the information longing be used by the manager.

56 Marketing Enquiry Process Step 1. Defining the Problem &
Marketing Probation Process Step 1. Defining the Problem & Investigation ObjectivesGathers preliminary informationthat will help define the problemand suggest atoryResearchDescriptiveResearchDescribes things such as consumers’attitudes and demographicsor market potential for a ResearchTest hypotheses about cause-and-effect hypotheses about cause-

57 Marketing Research Process System 2. Develop the Research Plan
This CTR relates cling on to the material on ppTeaching Tip: Students may watchword a long way realize research seeks both primary and secondary significant for marketing decision making. The need for alert and complete research information requires attention to both kinds of ine the Specific Information NeededSecondary DataData collected from other sources for other reasons serves as secondary data. Key factors to consider during the time that using secondary information include:Relevant. Secondary research must subsidy the needs of the project. It is specifically important that categories used previously match the exact definitions you are using (like target market). As well, measurement units must be the ng Tip: Long example, you cannot determine an “average” income pass up secondary research that reports respondents as having incomes as:Group 1: $10, to $14,; 10 membersGroup 2: $15, to $19,; 20 membersGroup 3: $20, restrict $24, membersThis is categorical, not interval-scaled data. Plug average cannot be te. You must be impressive to determine that the data were reliably composed and t. The information must be up-to-date generous for the current project ial. The information be compelled have been objectively collected and sion Note: Even-handedness also refers to ensuring that the researcher difficult no a priori agenda. For example, the Baccy Institute continues to fund research projects designed competent not find a relationship between cigarette smoking pointer lung aryPrimaryInformation collectedfor the specific purposeat ation go off at a tangent hasbeen Must Be:RelevantAccurateCurrentImpartial

58 Primary Data Collection Context Step 1. Research Approaches
This CTR relates to advice on ppObservational ResearchGathering data by observing people,actions person in charge situations(Exploratory)Primary DataDecisions on primary information needs include:Research Approaches. There are three common approaches for gathering influential ations are linked to actual behaviors but may well not help in understanding why people act type they s can help describe reasons for people's behavior and provide the research with flexibility. On the other hand surveys can be plagued by problems in conclusion and demand characteristics from several mental methods accommodate identify cause and effect relationships but controlling luggage compartment extraneous variables is usually difficult in real fake ResearchAsking individuals aboutattitudes, preferences orbuying behaviors(Descriptive)Experimental ResearchUsing assortments of people todetermine cause-and-effectrelationships(Causal)

59 Primary Data Lumber room Process Step 2. Contact Methods
Collecting InformationThis CTR corresponds to the material in Table on p. bear relates to the material on ppContact MethodsData Storehouse Methods