-David Foot breaks down to: young seniors (65-74), mid-seniors (75-84), &
senior seniors (85 & up)
-today 20% of Canadian households are made of people who live alone.
ECONOMIC CONDITIONS
-is a significant force that affects the marketing system of just about any organization.
STAGE OF THE BUSINESS CYCLE
-traditional cycle goes through 4 stages prosperity, recession, depression, & recovery.
-today depression is excluded because of its rarity in occurrence.
-Prosperity is typically is a period of economic growth.?companies tend to expand.
-in recessions less is spent by consumers because of economic hardship.
-in the recovery the economy moves from recession to prosperity.
INFLATION-is arise in price levels, causes decline in buying power.
INTEREST RATES-when interest rates high consumers refrain in buying expensive items.
UNEMPLOYMENT RATES-important figure, if people aren’t employed tougher to sell to.
COMPETITION
-executives should be gathering intelligence & otherwise be monitoring all aspects of their competitors
marketing activities.
-Firm faces competition from 3 sources
A. Direct brand competition & store competition from marketers of similar & directly
Competing products & services.
B. Substitute products that satisfy the same basic need.
C. Every company or organization is competing for the consumers limited buying power.
SOCIAL & CULTURAL FORCES
CHANGING VALUES-EMPHASIS ON QUALITY OF LIFE
-focus today is on quality of life not merely the quality of goods & services.
-education, health, environment more important.
-also immigrants have different values
-915,000 Chinese lived in Canada in 1996, expected to grow to 2.1 million by 2001.
ROLE OF MEN & WOMEN -male female stereotypes & roles slowly coming down
ATTITUDES TOWARD PHYSICAL FITNESS & EATING
-fish & chicken have gone up in consumption dramatically
EMPHASIS ON SERVICE QUALITY
-quality in service depends on expectations of customers.
CONCERN FOR THE ENVIROMENT
-using more biodegradable materials & recyclable products.
-as many as 50% of consumers in the future are expected to make purchases on the basis of
environmental factors.
DESIRE FOR CONVENIENCE
-want products ready & easy to use & convenient credit programs.
-want stores close by, open 24 hours.
-Growth of Internet
IMPULSE BUYING
impulse buying-purchasing done without much advance planning.
-partly because of attractive displays
TECHNOLOGY
Technology-has a tremendous impact on our lifestyles, consumption patterns, & economic well being.
-Internet will have big impact on marketing & business.
-with new technology come new problems. For example credit card security over net.
-in 1997, 8% or nearly 2 million Canadians accessed the Internet.
Major technological breakthroughs have a 3 fold impact on marketing:
-to start entirely new industries such as CD-ROM,
-To alter & virtually destroy existing industries.
-to stimulate other markets & industries not related to the new technology.
POLITICAL & LEGAL FORCES
-Influence from government policies.
A. General monetary & fiscal policies
B. Legislative framework & codes & policies set by government agencies.
C. Social Legislation seatbelts, no smoking
D. Government relationships with individual industries.
E. Legislation specifically related to marketing should know laws
F. The provision of info & the purchase of products.
EXTERNAL MICROENVIROMENT
-3 environmental forces that are external, but are a part of a company’s marketing
system, are that firm’s market, its suppliers, & its marketing intermediaries.
THE MARKET (see page 40, table 2-2)
-place where buyers & sellers meet, G & S are offered for sale, & transfer of ownership occurs.
-in mkt. Demand for any given product or service, there are 3 factors to consider:
A. people or organizations with wants (needs0
B. their purchasing power
C. the buying behaviour
SUPPLIERS
-critical to market success, that’s why suppliers part of marketing system.
MARKETING INTERMEDIARIES
-There are 2 types of intermediaries:
A. firms called middlemen or intermediaries-wholesalers & retailers
B. various organizations that provid4e such services as transportation, warehousing, & financing that are needed to complete exchanges.
ORGANIZATION”S INTERNAL ENVIROMENT
(SEE page 41, fig 2-3 & 2-4)
-organizations marketing system is also shaped by internal forces that are controllable
by management. These influences include firms production, financial & personal act.
CHAPTER 3
STRATEGIC MARKETING PLANNING
PLANNING AS PART OF MANAGEMENT
Management process, as applied to marketing, consists basically of (1) planning a marketing program, (2) implementing it & (3) evaluating its performance.
-planning stage includes setting goals & designing tactics to reach these goals
-the implementation stage entails forming & staffing the marketing organization according to the plan.
-the evaluation stage consists of analyzing past performance in relation to organizational goals.
-This third stage indicates the interrelated, continuing nature of the mgmt. Process.
-the results of this stage of the mgmt. Process are used in planning goals & strategies for future periods.
And the cycle continues
PLANNINGIMPLEMENTATIONEVALUATION
Analyze situationOrganizeCompare
Set goals ?Staff ?performance
Select strategies & tacticsOperatewith goals
Forecast demand FIG 3-1
Feedback plays role in first 2 stages.
THE NATURE OF PLANNING
-management first should decide what it intends to accomplish as a total organization & then develop a
strategic plan to achieve these results.
-on basis of this overall plan, each division of organization should determine what its own plans will be.
Planning-is deciding now what we are going to do later, including how & when we are going to do it.
Strategic planning-managers match an organization’s resources with its market opportunities over the long run.
Strategic window-was suggested to describe the limited amt. Of time in which a firm’s resources can actually be made available to take advantage of a opportunity.
-typically strategic window is only open temporarily, thus firm must move quickly.
KEY PLANNIONG CONCEPTS
MISSION (What business are we in?)
Mission-states what customers it serves, what needs it satisfies, & what types of product it offers.
-A mission statement indicates in general terms the boundaries of an organizations activities.
OBJECTIVES & GOALS (What do we want to accomplish?)
-book treats goals & objectives as synonyms,
Objective-is simply a desired outcome.
-effective planning must begin with a set of objectives.
To be worthwhile & workable objectives should be:
Clear & specific
Stated in writing
Ambitious, but realistic
Consistent with on another
Quantitatively measurable whenever possible
Tied to a particular time period
STRATEGIES & TACTICS (How are we going to get job done?)
Strategy-is a broad plan of action by which an organization intends to reach its objectives.
Tactic-is a means by which a strategy is implemented.
EXAMPLE
ObjectivesPossible Strategies
Increase sales next year by 8% over this years figure. 1) Intensify marketing efforts
Domestic markets.
2) Expand into foreign markets.
3) Increase customer retention by
reducing account closings by 10%
StrategyTactics
Direct our promotion to males aged 25-401) Advertise in magazines read by this group of peeps
2) Advertise on TV programs watched by these peeps
Increase revenue from existing customers3) Redesign the customer info system
4) Create a loyalty program for light & medium users
5) Retrain account analysts & service personnel.
SCOPE OF PLANNING
-strategic planning is usually long-range, coverage 3,5,10 or infrequently 25 years
-short-range planning typically covers 1 year or less
Planning at 3 different levels:
Strategic company planning: At this level, management defines an organizations mission, sets long-range goals, & formulates broad strategies to achieve these goals.
Strategic marketing planning: The top marketing execs set goals & strategies for an organizations marketing effort.
Annual marketing planning: Short-term plans should be prepared for a firms major functions. Based on strategic marketing plan.
STATEGIC COMPANY PLANNING
Consists of 4 essential steps:
1) Defining the organizational mission-influences all subsequent planning.
2) Analyzing the situation-
3) Setting organizational objectives
4) Selecting strategies to achieve these objectives.
Situational analysis-gathering & studying info pertaining to one or more specified aspects of an organization.
Organizational strategies-represents broad plans of action by which an organization intends to achieve its goals & fulfill its mission
STRATEGIC MARKETING PLANNING (SEE PAGE 51, FIG 3-2)
-strategic marketing planning is a 5 step process:
A. Conduct a situation analysis
B. Develop marketing objectives
C. Determine positioning & differential advantage.
D. Select target markets & measure market demand
E. Design a strategic marketing mix
SITUATION ANALYSIS
-involves analyzing the company’s marketing program has been, how it has been doing,
& what it’s likely to face in the years ahead.
-enables firm to know if to revise or devise plans.
-normally covers external environmental forces & internal non-marketing resources.
-SWOT assessment is part of the situational analysis that many organizations perform.
In this activity firm identifies & evaluates its most significant strengths, weaknesses,
Opportunities, & threats.
MARKETING OBJECTIVES
-each objective should be assigned a priority based on its urgency & potential impact
On the marketing area & in turn the organization.
POSITIONING & DIFFERNTIAL ADVANTAGE
-involves 2 complementary decisions: how to distinguish it from competitors.
Positioning-refers to a product’s image in relation to directly competitive products as well as other products marketed by the same company.
Differential Advantage-refers to any feature of an organization or brand perceived by customers to be desirable & different from those of the competition.
TARGET MARKETS & MARKET DEMAND
-a market consists of people or firms with needs to satisfy, money to spend, & willingness to spend it.
Target market-refers to a group of people or organizations at which a firm directs a marketing program.
MARKITINGF MIX
Marketing Mix-the combination of a product or service, how it is disturbed & promoted, & its price.
-traditionally, the marketing mix has been considered in terms of 4 elements that together must satisfy the
needs of the organization’s target markets & at the same time achieve its marketing objectives.
Product: strategies are needed for managing existing products over time, adding new ones, & dropping failed products. Also decisions about service levels, branding, packaging, & other product features such as warrantees.
Price: necessary strategies pertain to the locations of customers, price flexibility, related items within a product line, & terms of sale. Also, pricing strategies for entering a mkt. Especially with a new product, must be designed.
Distribution: involves the mgmt. Of the channels by which ownership of products is transferred from producer to customer & in many cases, the systems by which goods are moved from the place where they are produces to the place where they are purchased by the final customer.
Marketing communications: Strategies are needed to combine individual methods such as advertising, personal selling, & sales promotion into a co-ordinated campaign.
Customer service: This component deals with how the customer is handled as he/she deals with the firm.
-elements of marketing mix are interrelated.
ANNUAL MARKETING PLAN
-is master blueprint for a year’s marketing activity for a specified organizational division or major product
-separate plan normally should be prepared for each major product & company division
PURPOSES & RESPONSIBILITIES
-It summarizes marketing strategies & tactics that will be used to achieve specified
Objectives in the upcoming year. (become s what-to-do document)
-Plan focuses on “how to do it,” pointing to what needs to be done with respect to the
other steps in the management process, primarily implementation.
-Moreover plan outlines who is responsible for which activities, when the activities are
to be carried out, & how much time & money can be spent.
-executive responsible for the division or product covered by the plan typically prepares it.
-work starts 9 or more months before start of actual year planned & bulk of it is done 3 months in advance
RECCOMENDED CONTENTS
-exact contents of marketing plan should be determined by an organizations circumstances.
EX. Firm in intensely competitive industry would asses its competitor
In a separate area. Firm in another industry would present the assessment as part of situational analysis
SELECTED PLANNING MODELS
Table 3-4
A. Executive summary: 1 or 2 page section, the thrust of the plan is described & explained. Its intended for execs who desire an overview of the plan but need not be knowledgeable about the details.
MARKETING
CHAPTER 1
Field Of Marketing
INFORMATION TECHNOLOGY
-New marketing based on info technology. EX. Royal Bank
-Royal spent $15 million on data base technology to serve customers more uniquely.
-Increased response rate from 4% to 60%.
NATURE AND SCOPE OF MARKETING
EXCHANGE AS THE FOCUS
-Marketing occurs any time 1 social unit (person or organization) exchanges something of
value with another social unit.
-Marketing consists of activities designed to generate & facilitate exchanges intended to satisfy
human needs or wants
Exchange-is one of 3 ways in which a person can satisfy a want.
EX. Clothes make, borrow, use some form of coercion to get them
or offer something of value to another who will voluntarily exchange
-Only last approach they call exchange in the sense that marketing is taking place.
Following must exist for marketing exchange to take place.
-2 or more social units must be involved & each must have wants to be satisfied. If you are self sufficient
there is no need for exchange.
-Parties must be involved voluntarily (Although argued monopolies deter this.)
-Each party must have something of value to contribute & each must believe that it will benefit
-Parties must communicate even if done through 3rd party. Without communication, no trade.
Marketers-take initiative in trying to stimulate & facilitate exchanges.
-They develop marketing plans & programs & implement them to create exchange that can be repeated
over time.
Market-on other side of exchange, made up of social units to whom marketing programs are directed & who will play a key role in acceptance or rejection of marketers offer. Markets made of customers
Customers-Any person or group with whom an individual or organizational marketer has an existing or potential exchange relationship.
People who constitute a market play a number of roles.
A. Decision maker, individual or organizational unit that has the authority to commit to an exchange
B. Consumer, who actually uses or consumes the product.
C. Purchaser, The party who actually carries out the exchange
D. Influencers, who affect decisions of others because of their expertise, position, or power.
Worth Baseball, new safer ball, but clashes with tradition
Needs-viewed in strict physiological sense (food, clothing, shelter) everything else is a want.
Product-the objective of the exchange or what is being marketed generically as the product.
-It can be a tangible, physical product, a service, an idea, a person, or a place.
tangible, physical product-corn flakes
a service-accounting advise
an idea-advertising slogan
person-individual applying for a marketing position
A place-provincial gov’t trying to attract tourism is an example of marketing a place as the product.
THE CONCEPT OF RELATIONSHIP IN EXCHANGE
Relationship-can develop when 2 people or organizations are voluntarily involved in an exchange situation, are communicating with each other, & are contributing something of value to the exchange & thereby mutually satisfy needs or wants.