Launch PollEverywhere :

1. Launch PollEverywhere: • Text ‘UWMBUSINESS’ to 37607 to begin session • Backup number: (747) 444 3548 • Have you CERTIFIED your phone? • Text “CERTIFY” to the system • The app doesn’t work

3. “Principles” of marketing?

5. Please note down: “Principles” • “Principle” = “a fundamental, general, truth” • Technologies come and go. Principles don’t change • Principles can be applied to a variety of situations: • New cultures • New technologies • New products • “New” consumers (segments)

6. A snapshot history of marketing “Orientation”

7. Snapshot history of Marketing • Production-oriented Era: It’s all about the product. A good product will sell itself • Sales-oriented Era: We need to persuade them to buy more. Personal selling, mass advertising. “Selling” • Market-oriented Era: Marketers forced to pay attention to what customers actually want. Marketers discover “marketing” • Value-based marketing Era: Have to provide more value than competitors, in order to be successful.

8. Core Aspects of Marketing • Marketing helps create value • Note drastic change of focus: From the Seller’s needs to the Customer’s needs • “Selling orientation” vs. “Market or Customer orientation” • “Orientation” = “a turning to” • Difference between Marketing and Selling

10. MEANING?

11. SELLING: Product Firm Customers MARKETING: Firm Product

12. Exchange of value:the fundamental focus of marketing “PRODUCT” (Value) Seller Buyer VALUE

13. “Value”

15. What I Get What I give Value • Consumers make explicit, implicit trade-offs when making purchases. Ratio of benefits/costs = VALUE • They look to maximize benefits and minimize costs

16. Value = Benefits versus Costs

20. Developing Marketing Strategies and a Marketing Plan Ref: Text, chapter 2

21. In this topic, we will: • Understand what a “marketing strategy” is • Be able to explain what a “sustainable competitive advantage” is and why it’s important in a strategy • Describe the elements of a “marketing plan” • Use SWOT analysis – a tool that’s used in a marketing plan • Describe how a firm decides which consumer group(s) to focus its marketing efforts on • Describe 4 macro strategies to deliver extraordinary customer value • Use portfolio analysis to help evaluate marketing performance • Describe how firms grow their business

22. Strategy: Plans the “bundle of Value” “PRODUCT” (Value) Seller Buyer VALUE

25. Transforming a cup of coffee…into a “bundle of value” $1

26. Just a cup of coffee?? $2.10 - $4.65 $2.09 $1.49 - $2.89

27. What’s a “Marketing Strategy”? • McDonald’s, Starbucks, and Dunkin’ Donuts: • The target customer for each is quite different • The perception of what purchase of a cup of coffee means is different  product • The pricing is different. The way it is advertised, and the places where you can purchase it, and look and feel of a store, may be different

29. What’s a “Marketing Strategy”? • a marketing strategy is essentially a road-map that identifies: • The firm’s target market  who we want to reach (with our product) • The marketing mix to be used by the firm,  how we will do thatand • A “sustainable competitive advantage”  this is how we’re different

30. What’s a “Marketing Strategy”? • What’s a “sustainable competitive advantage”? • An advantage over the competition that is not easily copied • “Inimitable” Provide more value

32. A Sustainable Competitive Advantage • Acts like a strong, tall, wall built by the firm, around its customers and position in the marketplace.

34. A Sustainable Competitive Advantage • Is resilient to competition (the competition always tries to break down your “wall” and steal your customers) • Why is this important? Key to long-term financial success.

36. How?? Four Macro Strategies • To help develop extraordinary customer value, and hence sustainable competitive advantage • Customer Excellence • Operational Excellence • Product Excellence • Locational Excellence

37. Macro strategies for developing value

38. 1. Customer Excellence • Develop very special relationships with your customers, other companies can’t easily copy these: • Strategies to retain LOYAL customers: CRM • Consistently outstanding customer service

39. 2. Excellence in Operations • Excellent ways in running your business operations, not at all easily copied: • Efficient operations • Strong relationships with your supply chain; • Knowledgeable and skilled employees

40. 3. Product Excellence • Can others easily copy our product/ service? If not, you’ve achieved product excellence • These are products with high perceived value and a strong brand image as well as clear positioning • Consider INTERBRAND’s top global brands: Apple, Google, Coca-Cola, IBM, Microsoft, GE, etc.

41. Positioning: carving a unique space for your brand in consumers’ minds

42. 4. Locational Excellence • Particularly important for retailers and service providers

44. Macro strategies for developing value

46. The Marketing Plan

47. Process of Strategic Planning

49. Process of Strategic Planning

50. Starbucks: • “…..to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” • Products: Quality, ethical, products • Customers: Human connection • Stores: sense of belonging • Community: good neighbors