bmgt 411 week_2
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BMGT Week 2: September 3 2013
Kottler Chapter2 1: Marketing ManagementChapter 2: Connecting with Customers
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BGMT 411: Chapter 1• What is Marketing:
• Identifying human and social needs
• Identifying needs profitably
• 4 P’s Of Marketing
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BGMT 411: Chapter 1• 4 P’s of Marketing:
• Price
• Product
• Place
• Promotion
• People
• Partnerships
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BGMT411: Chapter 1• Marketing Management: The art and science of choosing target markets and
getting, keeping, and growing customers through creating, delivering, and communicating superior customer value
• What is value?
• Price?
• Convenience
• Luxury
• Status
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Goods P&G Pamper’s Diapers
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Services Kindercare Daycare Centers
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Events 2013 Chesney
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Experiences Skydiving Experiences
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Apple Product Experience
http://www.youtube.com/watch?v=Zr1s_B0zqX0
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• Other things that are marketed widely:
• People
• Places
• Properties
• Organizations
• Information
• Ideas
BGMT 411: Chapter 1
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• Can you think of companies that:
• Market more than one thing on the list?
• Used to market something, then added additional things to market?
• Became well known for a new marketing entity in addition to the one that got them started?
BGMT 411: Chapter 1
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Disney Experiences, Events, People,
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IBM Became Known for PC’s, Does not Make them Anymore
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Apple Genius Bar and Experiences
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Needs, Wants, Demands
Stated Needs: The customer wants an SUV
Real Needs: The customer does not want to pay over 25K
Unstated Needs: The customer would like to get good gas mileage
Delight Needs: Innovative system like SYNC for navigating and linking up iPhone
Secret Needs: The customer wants to be viewed as a trend setter
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Needs, Wants, Demands
Stated Needs: The customer wants an SUV
Real Needs: Looking for a luxury SUV that reflect’s executive status
Unstated Needs: The customer would like hassle free service at regular intervals
Delight Needs: Free oil changes for 5 years, Hassle Free ownership
Secret Needs: The customer wants to be viewed as successful among friends and family
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BGMT411: Chapter 1• Target Market: The market that presents the greatest opportunity to a marketer
• Demographics
• Psychographics
• Behaviors
• Segmentation: Distinct groups of buyers who might prefer product and service mixes. Segmentation and target markets are very similar
• Often time marketers will try to segment their best customers, and identify key trends to find more like them
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BGMT411: Chapter 1
• Value Proposition: A set of benefits that satisfy needs of potential customers, often made real by an offering
• Brand Image: The association in people’s minds hen they think of your product and service
• Companies spend millions of dollars building brands over time, trying to build long term relationships with customers and prospects
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http://brandirectory.com/league_tables/table/
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• Marketing Channels:
• Communication Channels: Mass Media, Targeted Media, Interactive, and Social Media
• Distribution Channels: How to get the finished products or goods to the end consumer, retailers, web sites, etc
• Service Channels: How to get the service into the customers hands vs a product (Ex. Bank)
BGMT 411: Chapter 1
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Channel Disruption: Dollar
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• Marketing Concepts:
• Production Concept: Products are widely available and inexpensive (Produce as much as you can at the lowest cost)
• Product Concept: Customers prefer products that offer the most quality or innovation
• Selling Concept: Aggressive marketing using communication channels and distribution channels to influence buys
BGMT 411: Chapter 1
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• Marketing Vs. Selling:
• Selling: Preoccupied with the sellers need to convert their product to cash
• Marketing: Focuses on the needs of the buyer, satisfying a customers needs not only by the product, but the entire experience around it
BGMT 411: Chapter 1
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Holistic Marketing Concept: development, design, and implementation of marketing programs, processes, activities (Everything matters). Added 4 Additional P’s: People, Processes, Programs, and Performance.
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• Performance Marketing:
• Financial Accountability: All spends are justified, with a clear ROI metric to measure the campaign
• Social Accountability: Ethical, environmental, legal, and social aspects that help build a brand - often associated with the needs and wants of the target market
BGMT 411: Chapter 1
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• The Role of a Marketing Manager:
1.Develop Marketing Strategies and Plans
2.Capture Marketing Insights
3.Connect with Customers
4.Build Strong Brands
5.Shape the Product Offerings
6.Deliver Value
7.Communicate Value
BGMT 411: Chapter 1
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BMGT 411: Kottler Chapter 2
Developing Marketing Strategies and Plans
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BMGT 411: Chapter 2
✤ Characteristics of a Great Marketing Company:
✤ Selects superior target markets in which it enjoys advantages
✤ All employees are customer focused
✤ Good working relationship across departments
✤ Incentives designed to lead to the right behaviors (Long Term Loyalty)
✤ Continuously build and tracks customer loyalty
✤ Skilled at building brand name and image
✤ Flexible in meeting customer demands
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Examples of Great Marketing Companies
✤ Starbucks
✤ Customer focused
✤ Strong loyalty
✤ Brand name and image
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BGMT 411: Chapter 2
✤ Creating Customer Value
✤ Value Exploration: How a company identifies new value opportunities
✤ Ex. Netflix Streaming Video
✤ Value Creation: How a company efficiently creates more promising new value offering
✤ Ford Sync System
✤ Value Delivery: How a company uses it’s capabilities and infrastructure to deliver new offerings more efficiently
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BGMT 411: Chapter 2
✤ Marketing Plan: The central instrument for directing and coordinating the marketing effort, operating at both strategic and tactical levels
✤ Strategic Marketing Plan: Often developed during annual plan, includes research, position, and strategies for growth - PowerPoint
✤ Tactical Marketing Plan: Outlines specific marketing tactics and timing
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Tactical Marketing Plan Example
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BMGT 411: Chapter 2
✤ Contents of a Strategic Marketing Plan (Note for Project)
✤ Executive Summary
✤ Situational Analysis - Including SWOT, Sales Trends, Internal Data, what is going on today
✤ Marketing Strategy - Mission, Marketing Objective, Financial Objectives
✤ Financial Projections
✤ Tactical Plan Overview
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Strategic Business Units
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BMGT 411: Chapter 2
✤ Marketing Plan Development: Large Organizations
✤ Begins at the Company Level - Profit drivers identified and Focus Strategic Business Units Identified
✤ Marketing Plans Allocated by SBU
✤ SBU Distributes Funds by Brand
✤ Each Brand Develops Marketing Plans to Meet Brand, SBU, and Company Goals
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Assessing Growth Opportunitie$
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BMGT 411: Chapter 2✤ SWOT Analysis: The overall evaluation of a companies strength’s, weaknesses,
opportunities, and threats
✤ Internal
✤ Strengths: What is your key strength’s? What should you focus on?
✤ Weaknesses: What are some area’s that could improve? Could you make customers believe these are strengths?
✤ External
✤ Opportunities: Changes in the economy, population growth, competitor closing
✤ Threats: Changes in the environment that may risk your products growth
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BMGT 411: Chapter 2
✤ Michael Korrs
✤ Whole Foods
✤ Apple
✤ Ford
✤ Target
✤ Chipotle
✤ Coors Light
✤ Point Park University
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BMGT 411: Chapter 2
✤ How to measure marketing plan performance:
1. Sales Analysis: STS Sales, YOY Sales, YTD Sales
2. Market Share Analysis: Increases in share vs key competition based on Nielsen data or other 3rd party data
3. Marketing Expense to Sales Analysis: Often used in declining brands to maintain sales with a lower marketing expense
4. Financial Analysis: Profit Margin, ROMI or Return on Marketing Investment
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BMGT 411: Chapter 2
What do you think will be the key metrics for the Wigle Whiskey Marketing Plan?
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BMGT 411: Week 3 Prep
• Written Assignment #2: Develop a SWOT Analysis for Wigle Wiskey and Present it to the class. Leverage Wood Chapter 2
• Post Answers to Blog
• Kottler: Read
• Chapters 3 - Collecting Information and Forecasting Demand
• Chapter 4 - Creating Long Term Loyal Relationships
• Wood: Read Chapter 2 - Analyzing the Current Situation
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