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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