marketing - university of british...

Marketing

Learning objectives

• The meaning of marketing• Difference between marketing and sales• External and internal components of a marketing

plan

What is marketing?

Marketing is the activity, set of institutions,

and processes for creating, communicating,

delivering, and exchanging offerings that

have value for customers, clients, partners,

and society at large.

AMA 2013

What all does marketing involve?

Knowing markets and “the” market

Knowing customers

Knowing potential customers

Knowing their needs

Knowing their latent needs (and wants)

Knowing how they think

Knowing how their thinking can be shaped

Knowing how impressions form

Knowing effective ways to form impressions

Knowing competitors and their strategies

Knowing how to organize a team

Knowing how to win at the “front-line”

Marketing vs sales

Let us develop the distinction in our own words

Scope of marketing

Every organization needseffective marketing in order to succeed

Developing a marketing plan

What information would you need?

Components of a marketing plan

1. Target market/customers2. Product attributes3. Pricing strategy4. Place (distribution) model5. Promotion plan6. Company positioning

Marketing mix- 4Ps

Components of a marketing plan

product place

Target customers

price promotion

The 4 P’s

Positioning

Marketing plan

Target customers

“A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him.He is not an interruption of our work. He is the purpose of it.He is not an outsider on our business. He is part of it.We are not doing him a favour by serving him.He is doing us a favour by giving us an opportunity to do so.”

- Mahatma Gandhi, 1890

The customer

The customer

The customer- market research

• The systematic and objective process of generating information

for aid in making marketing decisions

• The formal link between a company and the environment,

gathering information on:

customer’s wants and needs

the environment

The customer- market research

• the objective of marketing research is to facilitate the development of

knowledge that will help make decisions related to the each component of

the marketing plan

The customer- market research

• three types of marketing research

(varying according to the research problem, hypotheses, data collection

methods):

1. exploratory research – to gain ideas and insights (qualitative)

2. descriptive research – to provide numerical information (quantitative)

3. causal research – to establish causality (quantitative)

• two types of data for marketing research

1. primary data

2. secondary data

The customer- market research

•Primary data simplified market research:

visit retailers, home centres, department stores

look at flyers and brochures

face-to-face conversations with experts, consultants, academics,

managers, trade associations, supply chain actors, sales staff

attend trade shows, home shows

talk to people with first-hand knowledge – carpenters, builders,

architects, developers, renovators, etc.

trade magazines and journals

online reports

The customer- market research

•Secondary data: Governments

Canada: Industry Canada, Department of Foreign Affairs and International Trade, Natural Resources Canada / Canadian Forest Service, National Research Council, Statistics Canada, Canada Mortgage and Housing Corporation, provincial ministries of forests, provincial ministries of statistics, industry, and trade

United States: USDA Forest Service, US Department of Commerce - Bureau of Census

The customer- market research

•Secondary data: Associations

Canada: Forest Products Association of Canada, Canadian

Plywood Association, Council of Forest Industries, Structural Board Association, BC Wood Specialties (and other provincial equivalents), Canadian Wood Council, Western Red Cedar Lumber Association, Bureau de Promotion des Industries du Bois, Canadian Home Builders Association, Canadian Manufactured Home Association

United States: The Engineered Wood Association, The

American Forest and Pulp Association, The American Wood Council (and state equivalents), Western Wood Products Association, Southern Forest Products Association, American Hardwood Export Council, National Association of Home Builders, National Association of the Remodeling Industry, Wood Products Manufacturers Association, American Manufactured Home Association

The customer- market research

•Secondary data: Universities

Centre for Advanced Wood Processing (University of British Columbia), Center for International Trade in Forest Products (University of Washington), Center for Forest Products Marketing (Virginia Polytechnic Institute), plus forest products marketing departments at University of British Columbia, Louisiana State University, Oregon State University, Pennsylvania State University, University of Washington, Virginia Polytechnic Institute, University of Helsinki, Boku University

The customer- market research

•Secondary data: Journals

Academic: Forest Products Journal, Wood and Fiber Science, Journal of the Institute of Wood Science, Canadian Journal of Forest Research, Forestry Chronicle, Forest Science, Journal of Forestry, Journal of Forest Products Business Research

Trade: Asian Timber, Canadian Forest Industries, Crows Digest, Engineered Lumber Trends, Environmental Building News, Furniture/Today, Japan Lumber Reports, Logging and Sawmilling Journal, Madison’s, Random Lengths, Resource Information Systems Inc., Pacific Rim Wood Markets Report, Timber Trades Journal, Wood Flooring, Wood le Bois, Wood Products, Wood Science and Technology, Wood Technology, World Wood, Woodworking, Wood Markets Quarterly

The customer- market research

•Secondary data: Internet

Food and Agriculture Organization of the UNIndustry Canada - StrategisStatistics CanadaUS Census BureauFreedonia Focus (via UBC)Hoovers

Marketing mix

Target customers

product

Product

Physical good or service that satisfies a customer’s wants and needs

Products classification in the forest sector:• Commodity products • Value-added products• Differentiated products• Innovative products• Non timber forest products • Subsistence products• Ecosystem services

Forest products

lumberpaper

furniturefruits and nuts

carbon

plywood

doors and windows

musical instruments

flooring

newsprint

oriented strandboard

recreation

toys

shakes and shinglesMSR lumber

decks

prefabricated homes

bioenergy

medicinal products

rayon

maple syrup

corks

pulp

firewood

ethanol

biofuels

pallets

charcoal

medium density fibreboard

ecotourism

cabinets

spices

bark mulch

rubber

florals

waxes

resins

turpentine

coated papers

packaging

fencing

oils

food additives

inks

cosmetics

methanol

nanocellulose fibers

lumberpaper

furniturefruits and nuts

carbon

plywood

doors and windows

musical instruments

flooring

newsprint

oriented strandboard

recreation

toys

shakes and shinglesMSR lumber

decks

prefabricated homes

bioenergy

medicinal products

rayon

maple syrup

corks

pulp

firewood

ethanol

biofuels

pallets

charcoal

medium density fibreboard

ecotourism

cabinets

spices

bark mulch

rubber

florals

waxes

resins

turpentine

coated papers

packaging

fencing

oils

food additives

inks

cosmetics

methanol

nanocellulose fibers

commodity products

Forest products

lumberpaper

furniturefruits and nuts

carbon

plywood

doors and windows

musical instruments

flooring

newsprint

oriented strandboard

recreation

toys

shakes and shinglesMSR lumber

decks

prefabricated homes

bioenergy

medicinal products

rayon

maple syrup

corks

pulp

firewood

ethanol

biofuels

pallets

charcoal

medium density fibreboard

ecotourism

cabinets

spices

bark mulch

rubber

florals

waxes

resins

turpentine

coated papers

packaging

fencing

oils

food additives

inks

cosmetics

methanol

nanocellulose fibers

differentiated products

Forest products

lumberpaper

furniturefruits and nuts

carbon

plywood

doors and windows

musical instruments

flooring

newsprint

oriented strandboard

recreation

toys

shakes and shinglesMSR lumber

decks

prefabricated homes

bioenergy

medicinal products

rayon

maple syrup

corks

pulp

firewood

ethanol

biofuels

pallets

charcoal

medium density fibreboard

ecotourism

cabinets

spices

bark mulch

rubber

florals

waxes

resins

turpentine

coated papers

packaging

fencing

oils

food additives

inks

cosmetics

methanol

nanocellulose fibers

value-added products

Forest products

lumberpaper

furniturefruits and nuts

carbon

plywood

doors and windows

musical instruments

flooring

newsprint

oriented strandboard

recreation

toys

shakes and shinglesMSR lumber

decks

prefabricated homes

bioenergy

medicinal products

rayon

maple syrup

corks

pulp

firewood

ethanol

biofuels

pallets

charcoal

medium density fibreboard

ecotourism

cabinets

spices

bark mulch

rubber

florals

waxes

resins

turpentine

coated papers

packaging

fencing

oils

food additives

inks

cosmetics

methanol

nanocellulose fibers

non-timber forest products

Forest products

lumberpaper

furniturefruits and nuts

carbon

plywood

doors and windows

musical instruments

flooring

newsprint

oriented strandboard

recreation

toys

shakes and shinglesMSR lumber

decks

prefabricated homes

bioenergy

medicinal products

rayon

maple syrup

corks

pulp

firewood

ethanol

biofuels

pallets

charcoal

medium density fibreboard

ecotourism

cabinets

spices

bark mulch

rubber

florals

waxes

resins

turpentine

coated papers

packaging

fencing

oils

food additives

inks

cosmetics

methanol

nanocellulose fibers

subsistence products

Forest products

lumberpaper

furniturefruits and nuts

carbon

plywood

doors and windows

musical instruments

flooring

newsprint

oriented strandboard

recreation

toys

shakes and shinglesMSR lumber

decks

prefabricated homes

bioenergy

medicinal products

rayon

maple syrup

corks

pulp

firewood

ethanol

biofuels

pallets

charcoal

medium density fibreboard

ecotourism

cabinets

spices

bark mulch

rubber

florals

waxes

resins

turpentine

coated papers

packaging

fencing

oils

food additives

inks

cosmetics

methanol

nanocellulose fibers

innovative products

Forest products

Products

product

reputation

credit

quality

warranty

style

reliability

service

Total Product Concept

Product life cycle (PLC)

Introduction Growth Maturity Decline

0

in $

VALUE

TIME

PLC- utility

used for classifying products and developing marketing strategies

understanding where your product lies (or will soon lie) allows for strategic planning

Introduction: Growth: Maturity: Decline:

basic added features diversity of features basicand services

PLC- implications

length of a product’s life cycle depends on:

the rate of technological change and innovation

market acceptance of substitutes

economic factors

product class

extending a product’s life cycle is possible:

redefine markets

redefine production

redefine products

redefine business model

A word of caution..

the product offers no competitive advantage

markets are poorly defined

poor company fit, lack of channel support

weak marketing efforts

development / production / marketing costs underestimated

markets overestimated

poor understanding of customers’ wants and needs

• When new products fail in the marketplace?

Marketing mix

Target customers

place

Place/Distribution

• sometimes known as “distribution”,

“logistics”, “supply chain management”

• all of the activities that get the right

product to the right customer at the right

time

source: Vahid (2011)

Place

system made up of independent institutions involved in moving products from points of production to points of consumption

source: Sinclair (1992)

channels of distribution:

which intermediaries should be used?

channel ownership?

level of cooperation along supply chain?

domestic or international markets?

delivery times and locations?

packaging and treatments?

inventories?

mode of transport?

agents, merchants

vertical integration

Marketing mix

Target customers

price

Price

• amount charged for a good or service

fixed costs

variable costs

taxes

profit margin

Price

pricing models:•cost-based pricing•market share-based pricing (introductory pricing)•sales volume-based pricing•status quo pricing•value-based pricing•discounts:

trade, package, cash, promotional, quantity, seasonal, coupons, rebates

Promotion

The Promotional Mix

Traditional Advertising

Direct Marketing

Internet Marketing

Sales Promotion Public Relations Personal Selling

source: Belch et al. (2011)

Promotion and target market

mass marketing:a single marketing aimed at as broad a range of customers as possible

market

target marketing:segmenting the market and targeting products/services to one or more well-defined customer groups

advantages of market segments:• greater profit potential• less risk• less resources

market segments should be:• homogenous• accessible• economical

examples of market segments:• industrial vs. consumer• geographic• customer/product class• demographic• psychographic