MGT 6450 Marketing

1. MGT 6450 Marketing • Web Main Menu • Syllabus • Schedule & Outline • Class e-mail • News Overview of marketing • Small group formation & discussion of products/services via product life cycle • Next week: market segmentation

2. Marketing News • Social Marketing News • Advertising Age • AMA Marketing News • Direct Marketing News • Marketing Today • (smart phones)

3. "Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives." “The societal marketing concept holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors, in a way that preserves or enhances the consumer's and the society's well-being. “

4. How is marketing done in your organization? What is the relationship between your unit and the marketing department?

5. Strategic Considerations

6. Shift Happens 2010

7. Worker Impact • lifelong learning • adaptability/flexibility • networking • self-loyalty • Change Drivers • environment • globalism • demographics • technology • information • economics • politics • complexity • Organizational Response: • paradigm shift • new psychological contract • decentralizing • downsizing • telecommuting • virtual organization • reengineering • teamwork • Learning Organization • mergers/acquisitions • strategic alliances • target marketing • out-sourcing • temps • innovation • Demands • timeliness (JIT) • efficiency • speed • quality • customized • rate of change Competition !

8. Change Drivers Effects of Change Drivers • Competitive environment: • More informed customers • More evenly distributed technological capabilities among competitors • More closely linked suppliers • Easier entry for new competitors • World wide market for supplies and workers • Less expensive, more widely available communications, transactions, information, and production technologies such as: • Internet based communication and commerce • Data mining • Pattern recognition algorithms (neural networks) • Computer integrated design • Rapid prototyping • Simulation testing of designs and prototypes • Real time data tracking • Nanotechnology • Flexible manufacturing technology • Enterprise wide software • Business processes: • More knowledge about customer buying patterns • Improved forecasting ability • Improved production scheduling and tracking • More rapid production process design • Integration: • Coordination of geographically dispersed operations • Coordination of culturally diverse workforce • Coordination of logistics and information with dispersed networks of customer and suppliers • Culturally, ethnically diverse workforce that is more mobile: • Political and economic conditions creating more opportunities for markets and supplies worldwide • Aging workforce worldwide • Language and culture differences • Workforce: • More use of temporary workers • Competition for skilled and knowledge workers • Management across international cultures • Difficulty in molding organizational cultures

9. Traditional Strategy Model Marketing

11. SWOT or TOWS Analysis for Strategy Information from Market Research

12. What does our consumer need? What can we offer our consumer? How can we fulfill our customer? How can we exceed expectations Which objectives and performance indicators do we need in order to fulfill customer & our people, and grow profits? Where is our consumer? Where are we? A brief look at the future Who is our consumer? Who are we? When is performance reviewed? How can we improve Scenario Planning Consumer profile & values Company profile & values Market segments Company positioning Performance scorecard Learning plan Strategic goals, identifi-cation of distinctive competency Product positioning Product mix management Action Plan Market Plan Business Plan

13. What’s gone wrong with strategy? • 75% of executive teams do not have a clear customer propositions (idea of the mix that appeals to the target market) • 85% of management teams spend less than one hour per month discussing strategy • 60% of organizations don't link strategy and budgeting • 92% of organizations don't report on strategic lead indicators • Less than 5% of an organization's workforce understands its strategy • Only 51% of senior managers, 21% of middle managers, and 7% of line employees have personal goals linked with strategy • Organizations find that up to 25% of strategy measures change each year • The failure rate of strategies is between 70-90%, mainly due to poor implementation

14. A little bit o’ marketing history

15. Eras of Marketing Next ? Relationship/Partnering Era (1990-): Short term financial focus, downsizing, globalization, reengineering trends. Publish or perish pressure on research. Concern, trust, and investment in collaborative relationships with long term customers and competitors (e.g., Saturn owner parties, Sam’s Club memberships, etc.). Specialized interest areas; sophisticated multivariate segmentation; wide application [Problem: still short term, fragmented research, customer manipulation] Marketing Era (1950s-1980s): Mass market boom! Use of behavioral and quantitative sciences. Customer is King! Find (create) a need and fill it; (market segmentation & targeting) satisfy needs! [problem: too short term & costly] Sales Era (1925-1950s): Marketing principles. Good advertising and sales will overcome consumer resistance” (Brand image differentiation); Marketing associations & journals [problem: broad advertising not cost-effective] Production Era (1900-1925): “a good product sells itself”; offer more products! Build it and they will come! [problem: unsold inventory]. First courses with “marketing” title. Focus on distribution. Pre-Marketing Era (1750-1900): “I got it, you want it?”

16. Pre-Marketing Era (1750-1900) • “I got it, you want it?” • Cottage industries making narrow specialties with little variation • Often family businesses • Generally for local trade • Word of mouth promotion • No distinguishing field of study • Example: China 1986 basket and wood shipping containers

17. Production Era (1900-1925) • “A good product sells itself” (unsold inventory) • Offer more products! • Focus on distribution • First courses with “marketing” title • Problem– unsold inventory

18. Sales Era (1925-1950s) • Development of generally accepted “marketing principles” • Good advertising and sales will overcome consumer resistance” • Brand image differentiation • Marketing associations & journals (AMA, J. of Retailing, J. of Marketing) • Problem— broad advertising not cost-effective

19. Marketing Era (1950s-1980s) • Mass market boom! • Use of behavioral and quantitative sciences • Customer is King! • Find (create) a need and fill it • Market segmentation & targeting, satisfy needs! (high sales, low prices) • Problem— too short term & costly

20. Relationship/Partnering Era (1990-) • Short term financial focus, downsizing, globalization, reengineering trends. • Concern, trust, and investment in collaborative relationships with long term customers and competitors (e.g., Saturn owner parties, Sam’s Club memberships, etc.). • Publish or perish pressure on academic research. • Specialized interest areas; sophisticated multivariate segmentation; wide application • Problem: still short term, fragmented research, customer manipulation Hummer Party Sam’s Club

21. Social Media Marketing (2005-) • Widespread availability of technology enables lower cost channels • Online interactivity provides for promotion and information gathering • Growth of social networking makes for ubiquitous advertising opportunities • Search specification allows for targeted advertising • Viral marketing spread through the web via web, e-mail, blogs, video, and other mobile media • Problem—too many channels?

22. People connected to share Social networks as an operating system Every experience can now be social Personalized and accurate content Communities define future products & services Where to from here? http://www.web-strategist.com/blog/2009/04/27/future-of-the-social-web/