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Ethics

•Companies are being held to a higher standard

• Customers will punish unethical behavior

Sustain-ability

•Consumers want to protect the earth’s resources

•Companies must reduce impact of activities on the planet

Global

•Companies must understand global trade and economics

•Advances in transportation, communications, and computing have created global markets and competitors

The Marketing Environment Is Changing

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• Delivering VALUE

• Communicating VALUE

• Exchanging VALUE

• Creating VALUE

PRODUCT

PRICE

PLACE

PROMOTION

The focus has changed from the 4Ps to value

Key Takeaways

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Value as determined by the customer

Exchanging products

for $$

Delivering products

Communicating about products

Creating products

Marketing is all about VALUE

Value* = benefits received – (price + hassle)

* Value is determined by the customerAnd

In recognizing the importance of the customer and value, market oriented companies employ the marketing concept

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VALUE Defined

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Most companies have mission statements that emphasize:

Values

Customers

Motivation of employees

Corporate planning uses this mission statement as the framework indeveloping the corporate strategy.

The marketing plan, as part of the corporate plan, articulates the strategy for creating, communicating, and delivering an exchange of value.

The Marketing Plan

THE VALUE PROPOSITION

A 30-second “elevator speech”*

Here are the benefits of our product

This is why it is superior to other ones

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*Getting your point across to someone before the elevator reaches the bottom .

STRATEGIC PLANNINGSWOT ANALYSIS

Strengths Weaknesses

Internal elements (within your control)ProductsTechnology investmentsOperationsEmployees

Internal elements (within your control)ProductsTechnology investmentsOperationsEmployees

Opportunities Threats

External elements (outside of your control)The customerThe economyThe competitionTechnology (availability)Legal and regulatory issues

External elements (outside of your control)The customerThe economyThe competitionTechnology (availability)Legal and regulatory issues

THE SWOT ANALYSIS—INTERNAL

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Internal factors are strengths and/or weaknesses (companies can control these factors)

• Strengths could be: 1. financial 2. market position 3. patents 4. management 5. costs

• Weaknesses could be: 1. competitive position 2. organization structure 3. supplier dependency 4. product line 5. brand awareness

Key actions: Capitalize on a strength Address a weakness

THE SWOT ANALYSIS—EXTERNAL

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External factors are opportunities and threats (companies can’t control these factors)

• Opportunities can be: 1. global markets 2. enabling technologies 3. growing consumer wealth 4. currency exchange rates 5. government spending

• Threats can be: 1. economic contraction 2. government regulations 3. social and political changes 4. trade barriers 5. taxes and mandated expenses

Actions required stay informed on global markets and issues anticipate and prepare for government actions monitor technology advances