国际商务导论 Fundamentals of Business

国际商务导论Fundamentals of Business Lecture 2: Marketing: An Overview

What to cover today： • What is marketing? • Marketing mix: the 4 P’s • Functions/procedures of marketing • Marketing research • Market segmentation Exercises

1. What is marketing? Case study: General Motors’ Marketing Approach • Read the story of GM’s marketing efforts over time, and try to capture as many key concepts about marketing as you can. • What do you think led to GM’s success in selling their cars before the 1980s, and why did their market share fall in recent decades?

Key marketing concepts: • customer needs • price ranges • brands • styles and identity • marketing strategy • customer loyalty • market segment • design, quality, cost…

Marketing is: -- finding the needs of the customers and satisfying them at a profit -- how you design and define your products, distribute your products, promote your products, and maintain a relationship with your customers -- the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives (Source: The American Marketing Association, Marketing News, September 15, 2004, p.17)

marketing selling How does 市场营销differ from 销售? -- marketing starts from the customers, while selling starts from the products -- marketing involves a broader range of activities/functions than selling

the marketing concept 营销理念 -- the belief that a whole company must be coordinated to serve its present and potential customers and to do so at a profit customer satisfaction (short-term) CRM (customer relationship management) higher & more sustainable profit customer loyalty (long-term)

What does the needs of customers mean to a company? • “Kodak’s future is in total customer satisfaction.” -- Eastman Kodak • “I (the CEO) want everyone in IBM to be obsessed with satisfying our customers.” -- IBM • “We aim to redouble our efforts … toward one simple goal: meeting the needs of our customers.” -- Apple Computer (Source: annual reports)

2. Marketing mix 营销组合: the 4 P’s • Product 产品 • Price 价格 • Promotion 促销 • Place/distribution 分销

Listening: Developing a marketing mix (07:46) Word bank: trademark 商标 warranty 质量保证 Tasks: • Listen to the first part of the recording, and note down the definition of a marketing mix • Listen to the second part, and match the four elements of marketing mix

Task 1: Definition of a marketing mix Decisions about marketing involves strategies for four areas of marketing activities: production, distribution, promotion, and pricing. A firm’s marketing mix blends the four strategies that fit the needs and preferences of a specific target market. Marketing success depends not on the four individual strategies, but on the unique combination.

Task 2: Matching • Distribution strategy • Product strategy • Pricing strategy • Promotional strategy a. -- also includes decisions about package design, a brand name, trademarks, warranties, product image, new product development and customer service b. -- ensures that customers receive their purchase in the proper quantities at the right time and locations c. -- uses effective blending of advertising, personal selling, sales promotion and public relations in achieving its goals of informing, persuading and influencing purchasing decisions d. -- helps set profitable and justifiable prices for the firm’s product offerings

3. Functions/procedures of marketing • market(ing) research 市场调查 • acquiring 产品获得 • selling 销售 • transportation 运输 • storaging 储存 • finance and credit 金融与信用 • risk taking 风险承担 • standardization and grading 标准化与分级

4. Marketing research 市场调查 -- all marketing strategies/activities begin with marketing research -- the systematic search for information that uncovers customer needs, how these needs differ among customers, and whether or not a company’s products appeal to customers; also called consumer analysis 消费者分析, or need analysis 需求分析 -- when marketing research correctly identifies customer needs, the chance that product development will create a product customers want to buy increases

Listening: Five crucial questions to ask before conducting marketing research (00:24) Q1: What is the need category? Q2: Who needs us and why? Q3: Who is buying? Q4: Who is using the products? Q5: What is the buying process?

4.1 Procedures of marketing research Locating unmet needs that the product does not satisfy Identifying customers’ existing needs for a particular product Searching for ways to make a product that better suits those unmet needs

4.2 Approaches to marketing research Product-oriented approach: -- focuses on the characteristics of existing products, either the company’s own, or the competitors’ Customer-oriented approach: • individual interviews (FtF, telephone) • questionnaires (FtF, mail, online) • spot observation • trade fairs/showrooms • experiments • focus groups

Focus group 焦点小组 -- a group of people brought together to share their thoughts and feelings about a particular product and uncover how and why it satisfies or does not satisfy their needs -- size: usu. between 8-30, wide representativeness -- several focus groups are often hold to ensure the accuracy of the information collected

5. Market segmentation 市场细分 goal of market segmentation: -- to optimize the fit between the purchasing behaviour of customers in a given market segment, and the marketing mix of the firm, and thereby maximize sales to that segment product positioning 产品定位: -- the process of customizing or tailoring a product to a specific market segment

Market segments of athletic shoes:

5.1 Variables for identifying market segments • geographic variables 地理区域因素 • demographic variables 人口统计因素 • psychological variables 心理因素 • product-use variables 产品用途因素

5.2 Approaches to market segmentation • Once market segments have been identified, a company has to decide whether to make products to serve one, several, or all segments. Should all companies produce a wide range of products aimed at various market segments? • Operating costs increase when a different product is made for one specific segment, but sales revenues increase more than costs do when a range of products are aligned with the needs of customer groups in different segments and thus attracts many more customers.

3 segmentation approaches leading to 3 marketing strategies: • No market segmentation: a company chooses not to recognize market segments, and make a single product to target the average, or typical customers; leading to mass marketing • High market segmentation: a company chooses to recognize the differences between customer groups, and make a different product to target each different segment; leading to multiple-segment marketing • Focused market segmentation: a company chooses to focus on just one or two segments, and make a product to target just these segments; leading to focused marketing

5.3 Related concepts: • customer group 消费者群体: a group of people who have a similar need for a particular product; subgroup within each customer group: people who have an even more specific need for a product • target market 目标市场: a group of individuals or organizations with similar traits and needs that a company aims to cater to, e.g. Park’n’shop vs. Taste

Case study: A Niche Player

Your own marketing plan!

Exercises 1. Translation 1. 产品定位 2. 市场调查 3. 营销组合 4. 市场细分 5. 消费者分析 6. 消费者群体 7. 客户关系管理 8. 性价比 9.客户满意度 10. 客户忠诚度

2. Case study:Kodak’s Flawed Focus Questions: • What are the market opportunities missed by Kodak since the 1960s? • What lessons can we draw from Kodak’s flawed marketing strategies?

3. Group project: choose one cosmetics brand among the following six, and then describe and evaluate its target market and marketing mix • Chanel 香奈儿 • Neutrogena 露得清 • DHC 蝶翠诗 • Amway Artistry 安利雅姿 • Vichy 薇姿 • La Mer 海蓝之谜

4. Supplementary reading • General Motors’ Marketing Approach (Jones, p251) • Kodak’s Flawed Focus (Jones, p261) • The Four P’s of the Marketing Strategy • Identifying a target market (Madura, p398)

国际商务导论 Fundamentals of Business