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1、Principles of MarketingChapter (110)Name : Class : The Intern ati onal College of Henan Un iversity of Tech no logyChapter 1 : Marketing in a changing worldWhat is market ingMarketers job is deali ng with customers.Marketi ng is the delivery of customer satisfacti on at a profit.Two goals of market
2、ing: attract ing new customer; keep ing curre nt customer.Marketi ng is the most importa nt job in an orga ni zati on.Marketing defined” ;at the present, the only way doMarketi ng is not only sell ing and advertis ing.The old sense of marketi ng is“ telli ng and selli ngthe marketi ng is satisfy ing
3、 customer n eeds.A detailed defi niti on: A social and man agerial process whereby in dividuals and groups obta in what they n eed and want through creati ng and excha nging products and value with others.The process of market ingIde ntify customer sn eeds and wantsDesig n or improve the productSent
4、 the productto market(make it available)Get feedbackfrom customerTell ing customer the product cansatisfy their n eeds & wantsSeveral importa nt con cepts in the defi niti on1. Needs, wan ts, and dema nds.Needs: the basic huma n requireme nt.Want: The form take n by a huma n n eed as shaped by cultu
5、re and in dividual pers on ality.Dema nds: huma n wants that are backed by buying power2. Products and servicesProducts: Anything that can be offered to a market for atte ntio n, acquisiti on, use,or con sumpti on that might satisfy a want or n eed.Products in clude physical objects, services, pers
6、ons, places, orga ni zati ons, and ideas.Products can be referred as satisfier, resource, or marketi ng offer.3. Value, satisfact ion, qualityCustomer value:The differe nee betwee n the values the customer gains fromowning and using a product and the costs of obta ining the product.Customer satisfac
7、tion : The extent to which a product perceived performanee matches a buyer s expectation.Quality: The totality of features and characteristic of a product or service thatbear on its ability to satisfy customer n eeds.4. Excha nge, Tran sact ions, and Relati on shipsExcha nge : the act of obta ining
8、a desired object from some one by offeri ng somethi ng in return.Tran sact ion:A trade betwee n two parties that i nvolves at least two things of value,agreed-up on con diti ons, a time of agreeme nt, and a place of agreeme nt.Relati on shipmarketi ng: The process of creat ing, maintaining, and enha
9、ncingstrong, value-lade n relati on ships with customer and other stakeholders.Each party in the system adds value for the next level. So a company s successdepe nds not only on its own acti ons but also on the relati on ships with others.5. MarketsMarket: The set of all actual and potential buyers
10、of a product or serviceProduct-ServicesIn dustryMarket(a collecti on of sellers)Information(a collecti on of buyers)MoneyInformationMarketi ng man ageme ntThe analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers f
11、or the purpose of achievi ng orga ni zatio nal objectives.Marketi ng man ageme nt in volves dema nd man ageme nt and customer relati on ship man ageme nt.Dema nd man ageme ntGen eral speak ing obta ining maximized profit is compa nies goal.Every compa ny has a product ion optimizati on, to meet this
12、 optimized producti on levelmarketer n eed man age the dema nd.In some sen se, marketi ng man ageme nt is dema nd man ageme ntCustomer relatio nship man ageme ntCustomer relati on ship man ageme nt s objective is in creas ing customer loyalty.Many research point out, the cost of obta ining a new cus
13、tomer is ten times higher tha n keep ing a curre nt customer.Many compa nies put emphasis on explore customer lifetime value.Marketi ng man ageme nt philosophiesThe product ion con ceptThe product con ceptThe selli ng con ceptThe marketi ng con ceptThe societal marketi ng con ceptThree con siderati
14、ons un derly ing the societal market ing con ceptSociety(Huma n welfare)SocietalMarketi ngCon sumersCompa ny(Want satisfacti on)(Profits)Marketi ng challe nges in the new conn ected mille nn iumConnecting technologiesComputerIn formati onCommu ni cati onTran sportati onConn ecti ons with CustomersCo
15、nn ect ing more selectivelyConn ect ing for lifetime-valueConn ect ing directlyConn ecti ons with market ing part nerOther compa ny departme ntSuppliers and distributorsStrategic allia ncesConn ecti ons with the world arou nd usGlobal conn ecti onsConn ecti ons with valuesAnd resp on sibilitiesBroad
16、e ned conn ecti onsTech no logies for connectingThe major force beh ind the new conn ected ness is tech no logy.The tech no logy boom has created excit ing new ways to do marketi ng.Powerful computer and IT tech no logy en able marketer con trol detailed market in formati on.Virtual reality shorte n
17、 the product launch periodInternet fun dame ntally cha nges the way we do bus in essConnections with customerMass market ing VS selective market ingShort- run relati on ship VS customer s LifetimeMarket ing in termediaries VS connecting directlyConnections with marketi ngConnecting in side the compa
18、 ny (cross-fu nctional team)Connecting with outside partnersSupply cha in man ageme ntStrategic alliances: product allianee, promotion allianee, logistics allianee, and pricing allianceConnections with the world around usGeographical and cultural dista nce have shr unk.Compa nies have to face global
19、 competiti on.Global economy become in terdepe ndent.Globalizati on enforce compa nies pay ing more atte nti on to environmen tal issues.Chapter 2 : Strategic Planning and the Marketing ProcessStrategic pla nningCompa nies n eed pla nning their bus in ess, because strategic pla nning helps the compa
20、 ny to an ticipate and resp ond quickly to cha nges.Strategic planning is different from annual planning or Iong-range planning, strategic planning deal with taking advantage of opportunities in its changing environment.Strategic planning definition: The process of developing and maintaining a strat
21、egic fit between the organization goals and capabilities and its changing market ing opport un ities.It involves defining a clear companymission, setting supportingobjectives,desig ning a bus in ess portfolio, and coord in ati ng functional strategy.Corporate levelSteps in strategic pla nningBusin e
22、ss un it, product and market levelDefi ningthe compa nymissio nSett ingcompa nyobjectivesAnd goalsDesig ningthe bus in essportfolioPla nning,marketi ng,And otherfun cti onalstrategies1. Defining the compa nyMissi on stateme nt ibus in ess and missi ons the organization s purpose it wants to accompli
23、sh in thelarger en vir onment.Missi on stateme nt n eeds.defi ne the bus in ess in terms of satisfy ing basic customerA mission statement should be realistic, specific, fitting the market environment, disti nctive compete ncies, and motivati ng.Some examplesCompa nyProduct-Orie ntedDefin iti onMarke
24、t-Orie ntedDefin iti onDis neyWe run theme parksWe create fantasies - a place where America still works the way it supposed toRevl onWe make cosmeticsWe sell lifestyle and self-expressi on; success and status; memories, hopes, and dreamsWal-MartWe run discou nt storesWe deliver value through low pri
25、ces toMiddle America nsLenovoWe sell computersWe try to help people with a productive work and a qualified life.2. Sett ing compa ny objective and goalsA missi on is anin visible hand ” guid ing people in the orga ni zati onObjective is more detailed, and each man ager is resp on sible to reach his
26、objective At different period, company s mission is translated iistot of objectives.3. Desig ning the bus in ess portfolioBusin ess portfolio is the collect ion of bus in esses and products that make up the compa nyTo succeed in the future, compa ny should: An alyze curre nt portfolio and decide whi
27、ch bus in ess should receive how much in vestme nt Develop growth strategies for addi ng new products or bus in ess to the portfolio1. An alyz ing the curre nt bus in ess portfolioMan ageme nt begi n with ide ntify the key bus in ess (SBU) making up the compa ny.A strategic bus in ess un it can be a
28、 compa ny divisi on, a product line with in adivisi on, or a sin gle product or brandThen, management should assess the attractiveness of its various SBUs and decide how much support each one.Two approaches: one is BCG approach, the other is GE approachThe Bost on Con sult ing Group ApproachThere ar
29、e two dime nsions:a) Attractive ness of the in dustry (vertical axis)b) Stren gth of SBU in the in dustry (horiz on tal axis)Four types of SBU:a) Stars: high-growth, high-shareb) Cash cows: low-growth, high-sharec) Questi on marks: high-growth, low-shared) Dogs: low-growth, low-shareThe areas of the
30、 circles are proportional to the SBU s dollar sales.Discussi on of BCG ApproachThe ideal portfolio should be:Strong Cash cows;Some StarsSome Questi on mark;Few DogsSBU s life cycleMost SBUs start out as Questio n marks, and move into the Stars category if they succeed. Later, they become Cash cows w
31、he n the market growth falls. Fin ally, end of their life cycle as Dogs or die off.The Gen eral Electric Approach1. Similar with SCG, but more comprehe nsive2. In dustry attractive ness in dex make up of several factors3. Busin ess stre ngth in dex in clude also many factorsRelative Market ShareBusi
32、n ess Un it Stren gthThe horiz on tal of the GE/McK in sey matrix is the stre ngth of the bus in ess un it.Some factors that can be used to determ ine bus in ess un it stre ngth in clude.Market shareGrowth in market shareBrand equityDistribution channel accessProducti on capacityProfit margins relat
33、ive to competitorsIn dustry Attractive nessThe vertical axis of the GE/McKinseymatrix is industry attractiveness,which isdetermined by factors such as the following:Market growth rateMarket sizeDema nd variabilityIn dustry profitabilityIn dustry rivalryGlobal opport un itiesMacroe nvironmen tal fact
34、ors(PEST)The limitati ons of those matrix approachDifficult time-c onsuming, and costly to impleme ntToo concen trati ng on curre nt, but little value to the futureMislead the company over-emphasis on the market-share growth, and growth through entry into attractive new marketDevelop ing growth stra
35、tegiesOne useful device for identifyinggrowth opportunitiesis the Product-Market ExpansionGridExisti ngNewproductsproductsExisti ng marketsMarket pen etratio nProduct developme ntNew marketsMarket developme ntDiversificati onThe marketi ng processMarketi ng process in cludes four steps: analyzing ma
36、rketing opportunities selecting target markets developing the marketing mix managing the marketing effort.Connecting with con sumerIn a market, there are too many different kinds of consumers with too many differe nt kinds of n eedsThree con cepts: market segme ntati on, market targeti ng, market po
37、siti oningMarket segme ntatio n: divid ing a market into disti net groups of buyers on the basisof needs, characteristics, or behaviors who might require separate products or marketi ng mixesMarket targe ting: the process of evaluating each market segment s attractivenessand selecti ng one or more s
38、egme nt to entry is market targeti ngMarket position: arranging for a product to occupy a clear, distinctive, and desirable place relative tocompet ing products in the minds of target con sumers.Marketi ng strategies for competitive adva ntageDesig ning competitive market ing strategies begi ns with
39、 competitor an alysis, anddepend on the company s industry position.Four gen eric marketi ng strategies: market leader, market challe ngers, market follower, and market n icher.Marketi ng mixDesig ning the marketi ng strategy begi ns with an alyz ing competitors and through compares marketi ng mix w
40、ith competitorsMarketing mix include: product, price, place, and promotion. (4Ps)4Ps is from the sellerview, but if from buyer view, there are 4Cs, namelycustomer soluti on, customer cost, convenience, and com muni cati on (4Cs)Man agi ng the marketi ng effort1. Marketi ng an alysis2. Marketi ng pla
41、 nningMarketi ng pla nning vitally in flue nee whether the compa ny can realize its strategic objectiveMarketi ng pla nning in clude executive summary, curre nt market ing situati on, threats and opport un ity an alysis, objectives and issues, marketi ng strategy, action programs, budgets, and con t
42、rol.3. Marketi ng impleme ntatio nMarket ing impleme ntatio n is the process that tur ns market ing strategies and pla ns in to market ing acti ons in order to accomplish strategic market ing objectives. Successful impleme ntati on largely depe nds on how well the compa ny ble nds its people, organi
43、zationalstructure, decision and reward system, and organizationculture into cohesive acti ons.4. Marketi ng departme nt orga ni zati onTo efficiently carry out company s marketing strategy and plan, there must be agood orga ni zed marketi ng departme nt.Moder n marketi ng departme nt can be orga ni
44、zed in one or a comb in ati on of ways: functional marketi ng orga ni zati on, geographic orga ni zati on, product man ageme nt orga ni zatio n, or market man ageme nt orga ni zati on5. Marketi ng con trolMarketing control is a process of measuring and evaluating the results of marketing strategies
45、and plans and taking corrective action to ensure that market ing objectives are achieved.There are two level of con trol:a) Operati ng con trolb) Strategic con trolChapter 3: The Marketing EnvironmentWhat is Market ing EnvironmentThe factors and force outside marketing that affect marketing manageme
46、nt s ability to develop and maintain successful relati on ships with its target customers.The marketi ng environment is made up of a microe nvironmentand amacroe nvironmentA. The company s microenvironmentMarketi ng man ageme nt s jobs is to attract and build relati on ships with customersby creat i
47、ng customer value and satisfact ion.To succeed in achiev ing this goal, marketers must depe nd on other factors in theMarketing Intermediaries help the company to promote, sell, and distribute its goods to final buyers.Marketi ngIn termediariesin cluderesellers, physical distributi on firms,marketin
48、g services agencies, and financial intermediariesMicroe nvironmen t-SuppliersSuppliers are an important link in the company s overall customer value deliverysystemMarketers must watch supply availabilityMarketers must mon itor the price trends of their key in puts.Microe nvironmen t-CompetitorsThe m
49、arketing concept states that to be successful, a company must provide greater customer value and satisfacti on tha n its competitors do.No sin gle competitive market ing strategy is best for all compa ni es.Porter s Gen eric strategy: Cost-leadership, differe ntiatio n, and n icherPublics: Any group
50、 that has an actual or potential interest in or impact on an organization s ability to achieve its objectivesIn clud ing finan cial publics, media publics, gover nment publics, citize n action publics, local publics, gen eral publics internal publicsB. The company s macroenvironment Demographic forc
51、es Economic forces Natural forces Tech no logical forces Political forces Culture forcesDemographic en vir onmentWorldwide populatio n growthPopulati on age mixEthnic marketsEducati onal groupsHousehold patter nsGeographic shifts in populationEcono mic environmentIn come distributi onSavin gs, debt,
52、 and credit availabilityChanging con sumer spe nding patter nsEn gel s laws: differe nces no ted over a cen tury ago by Ernst En gel in how people shift their spe nding across food, hous ing, tran sportati on, health care, andothergoods and service as family in come rises.Natural environmentShortage
53、 of raw materialsIn creased en ergy costsAn ti-polluti on pressures Changing role of gover nmentTech no logy environmentAccelerat ing pace of cha ngeUn limited opport un ities for inno vati onVaryi ng R&D budgetsIn creased regulati on of tech no logical cha nge Political-legal environmentLegislati o
54、n regulat ing bus in essMarket reformCorrupti on and ethicsSocial-culture en vir onmentSociety shapes our beliefs, value, and norms High persiste nee of core culture values Existe nee of subculturesChapter 4: Marketing research and Information systemThe marketi ng in formatio n system The marketi ng
55、 research processThe marketi ng in formatio n systemDefin iti on:People, equipment, and procedures to gather, sort, analyze, evaluate, and distribute n eeded, timely, and accurate in formatio n to marketi ng decisi on makers three major steps: Assessing information needs Developing needed informatio
56、n Distributing information to managerAssess ing in formatio n n eedsThe market ing in formatio n system (MIS) should bala nee what the man ager would like to know against what they really need and what is feasible to offer.Man agers always want to know as much as they could getMIS should exam ine th
57、e in formatio nue aivalcostDeveloping informationThe in formati on n eeded by man ager can be obta ined from:In ternal dataMarket ing in tellige neeMarketi ng researchInternal DataInternal database: computerized collect ions of in formati on obta ined from data sources with in the compa nyIn formati on in
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