INTRODUCTION TO MARKETING

COMM 2042015-2016

TERM 1

Prof: Melissa StromSeptember 14th, 2015

AGENDA

Introduction

Course content Discussion of course syllabus

Project: Marketing Plan!

Your introductions (student info sheet)

Start Chapters 1 and 2

SOCIAL MEDIA…

ETHICS AND POSITIONING…

ADVERTISING…

Westfield Stratford City

PRODUCT DEVELOPMENT…

WHO AM I ? BACKGROUND IS…. Biology and Biotechnology!

WHO AM I?

Teaching this term: Comm 204: Introduction to Marketing Comm 447: Entrepreneurship and Small Business Management

WHO AM I?

eco nconsultin

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EXAMPLE 1: CRAFT BEER…..

Source: http://www.marketingmag.ca/brands/crafting-small-market-identity-with-big-market-marketing-123200

EXAMPLE 2…

TEXTBOOK

Marketing: An Introduction, 5th Canadian Edition

But, you can also use the 3rd or 4th Edition.

EMAILING

Please address me by: Melissa, Ms. Strom, Prof. Strom, etc… Not, “hey you”, or “hey”

Also, please include your name At least first name and initial of last name (Ex: Ryan D.)

EVALUATION CRITERIA

Marketing Plan: 45% Phase 1 and 2 (done individually)- 10% each Phase 3 (final report and presentation)- 17.5% and

7.5% Phase 3 report and presentation done as a group

and has peer evaluation component

Midterm Exam 15%

Final Exam: 35%

Participation: 5% Participation sheets, randomly given Not marked for “correctness”

IN CLASS ACTIVITIES

MARKETING PLAN

Past Clients: Midtown Plaza Lululemon JoJo’s Boreal Bars Manitou Springs Resort and Mineral Spa Club Mynx Neechie Gear Great Western Brewery

PRAIRIE PROUD

MARKETING PLAN

Phase 1: Marking rubric posted External research required Prairie Proud Case provided

▪ On blackboard shortly

Done individually

Phase 2: Marking rubric posted Done individually

MARKETING PLAN

Phase 3: Done in groups Written and presentation components Marking rubric for report component is posted on blackboard

(presentation rubric to be)

STUDENT INFORMATION SHEET Please fill out and hand in.

IN-CLASS EXERCISE

You will be given 6 slips of paper

Look at what is written on the slip of paper If you agree with what is written, keep the paper If you disagree, trade the slip of paper with someone else You want to end up with 6 slips of paper that describe you

INSIGHTS

•Chapter 1 What is marketing? Needs, wants and demands Customer relationship management

•Chapter 2 Strategic planning

DO CHURCHES USE MARKETING? HOW ABOUT UNIVERSITIES?

MARKETING IS…

Attracting new customers by promising and delivering superior value.

Building long-term relationships with customers by delivering continued customer satisfaction.

Creating, building and managing these relationships profitably over time.

VALUE IS DEFINED DIFFERENTLY BY EACH CONSUMER

www.dlightdesign.com

Moving Windmills

http://williamkamkwamba.typepad.com/

NEEDS, WANTS, DEMANDS

Needs are states of felt deprivation. Physical.

▪ Food, clothing, shelter, safety. Social.

▪ Belonging, affection. Individual.

▪ Learning, knowledge, self-expression.

▪ Everyone has basic needs

We all need clothing, but we all want to wear something different.

NEEDS, WANTS, DEMANDS

Our “wants” differ Based on culture and personality

Our buying power creates demands.

Successful marketers understand the needs, wants and demands of their customers

WHAT IS YOUR FAVOURITE?

Or, none of them?

PRODUCTS, SERVICES, EXPERIENCES

Products. Anything that can be offered for acquisition, attention, use, or

consumption that might satisfy a need or want.

Services. Activities or benefits offered that are essentially intangible and do

not result in ownership of anything.

Experiences. Create, stage, and market brand experiences Attending live theatre, music concert.

WHAT ARE THEY “SELLING”?

Hal Johnson and Joanne McLeod- Body Break

Hinterland Who’s Who

MARKETING MANAGEMENT ORIENTATIONS- THE PRODUCTION CONCEPT

Run the risk of marketing myopia

Customers will favour products that are available and highly affordable

Management focuses on production and distribution efficiencies

MARKETING MANAGEMENT ORIENTATIONS-THE PRODUCT CONCEPT

• Consumers favour products that offer the most in quality, performance and innovative features.

• Can lead to marketing myopia.

MARKETING MANAGEMENT ORIENTATIONS-THE SELLING CONCEPT

• Idea that the company has to use large scale promotional efforts to sell their products.

MARKETING MANAGEMENT ORIENTATIONS-THE MARKETING CONCEPT

•Knowing the needs and wants of target markets and delivering satisfaction better than competitors do

MARKETING MANAGEMENT ORIENTATIONS-THE SOCIETAL MARKETING CONCEPT

Taking into consideration the long-run welfare of society Company-profits Consumers- want satisfaction Society- human welfare

WOULD YOU SAY YOU HAD A RELATIONSHIP WITH A

MARKETER?

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

20% of customers create 80% of profit Customer relationships are important!

Customer Perceived Value Customer’s subjective view of the offer’s value compared to competitive offers. Example: Coca-Cola

Customer Satisfaction Customer’s subjective view of the value received in return for the purchase price. Customer satisfaction versus customer loyalty

Customer Delight Customer’s subjective view of the increased value received above the purchase price.

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Customer lifetime valueAll the purchases by that customer over their lifetime.

Customer shareShare of customer is the percentage of customers that buy a company’s product of all customers purchasing in that product category.

Customer equityThe total combined customer lifetime value of all of the company’s customers.

Often a more accurate measure of a company’s value than sales or market share.

INTRUSION VERSUS ATTRACTION

Kokanee Ranger

Commercial

www.kokanee.ca

Leads to consumer-generated marketing

IMPORTANT POINTS:

You want to build the right relationships with the right customers

You can’t be everything to everyone

CUSTOMER RELATIONSHIP GROUPS

1-44

Projected loyalty

High

Profitability

Low

Long-term customers

Short-term customers

Good fit between company’s offerings

and customer’s needs; high profit potential

Limited fit between company’s offerings

and customer’s needs; low profit potential

Little fit between company’s offerings

and customer’s needs; lowest profit potential

Good fit between company’s offerings

and customer’s needs; highest profit potential

Strangers

Butterflies True Friends

Barnacles

WHAT IS STRATEGIC PLANNING?

Strategic Planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

A&W ARTICLE

Read articles provided

In groups, discuss questions on sheet

One sheet per group to be handed in at end of class

Once group discussion is complete, we will discuss as a class

STEPS IN STRATEGIC PLANNING

MISSION STATEMENTS

A mission statement is a statement of the organization’s purpose – what it wants to accomplish in the larger environment Example: Nike’s mission is “to bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)”

STRATEGIC BUSINESS UNIT (SBU)

A unit of the company that has a separate mission and separate objectives and that can be planned independently from other company businesses.

Can be a company division, a product line within a division or sometimes a single product or brand.

What do Old Navy, The Gap and Banana Republic all have in common?

BUSINESS PORTFOLIO The business portfolio is the collection of businesses and products that make up the company.

The company must: Analyze its current business portfolio or Strategic Business Units

(SBUs). Decide which SBUs should receive more, less or no investment. Develop growth strategies for growth or downsizing.

BCG (BOSTON CONSULTING GROUP) GROWTH-SHARE MATRIX

Low

High

High Low

Industry attractiveness,Market share, Cash generation

Nurture to feed cash to?

Use cash to make into star

Defend position

Fix or abandon

Businessstrength,Growth rate,Cash use

PROBLEMS WITH MATRIX APPROACHES Several problems exist: Can be difficult, time consuming, and costly to implement Difficult to define SBUs and measure market share and growth rate Focus is on current businesses; gives little help with future planning

As a result, many companies favour more customized strategic planning approaches

ANALYZING OPPORTUNITIES

• Product-Market Expansion Grid identifies four potential growth areas

USING TIM HORTON’S AS AN EXAMPLE Market penetration. Make more sales to current customers without changing products. Add new stores in current market areas; improve advertising,

prices, menu, service.

Market development. Develop new markets for current products. Review new demographic such as women, youth. Examine large potential U.S. market.

USING TIM HORTON’S AS AN EXAMPLE Product development. Offering modified or new products to current markets. Add lunch offerings and iced drinks, sell coffee in supermarkets, co-

brand products.

Diversification. Start up or buy businesses outside current products and markets. Making and selling CDs, testing restaurant concepts or branding

casual clothing.

EXAMPLE…

PRODUCT/MARKET EXPANSION GRID EXAMPLE

Source: http://auto.howstuffworks.com/smart-car.htm

Also…YouTube Video Rental

QUESTIONS?