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Marketing:Marketing:Building Building BlueprintsBlueprints
for Businessfor Business
Marketing:Marketing:Building Building BlueprintsBlueprints
for Businessfor Business
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
&&&&Marketers AdvertisersMarketers AdvertisersMarketers AdvertisersMarketers Advertisers Many different types of marketersMany different types of marketers Many different types of marketersMany different types of marketers
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
&&&&Marketers AdvertisersMarketers AdvertisersMarketers AdvertisersMarketers Advertisers
Durable GoodsDurable Goods Durable GoodsDurable Goods
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
&&&&Marketers AdvertisersMarketers AdvertisersMarketers AdvertisersMarketers Advertisers
ServicesServices ServicesServices
Durable GoodsDurable Goods Durable GoodsDurable Goods
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
&&&&Marketers AdvertisersMarketers AdvertisersMarketers AdvertisersMarketers Advertisers
RetailersRetailers RetailersRetailers
ServicesServices ServicesServices
Durable GoodsDurable Goods Durable GoodsDurable Goods
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
&&&&Marketers AdvertisersMarketers AdvertisersMarketers AdvertisersMarketers Advertisers
High TechHigh Tech High TechHigh Tech
RetailersRetailers RetailersRetailers
ServicesServices ServicesServices
Durable GoodsDurable Goods Durable GoodsDurable Goods
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
Many different types of marketersMany different types of marketers Packaged goodsPackaged goods
&&&&Marketers AdvertisersMarketers AdvertisersMarketers AdvertisersMarketers Advertisers
But they all have similar methodologies But they all have similar methodologies and organizations.and organizations.
But they all have similar methodologies But they all have similar methodologies and organizations.and organizations.
And moreAnd more And moreAnd more
High TechHigh Tech High TechHigh Tech
RetailersRetailers RetailersRetailers
ServicesServices ServicesServices
Durable GoodsDurable Goods Durable GoodsDurable Goods
&&&&Marketers AdvertisersMarketers AdvertisersMarketers AdvertisersMarketers Advertisers This lecture covers:This lecture covers: The Marketing Function - 5 PsThe Marketing Function - 5 Ps The Marketing DepartmentThe Marketing Department
Organizational StructureOrganizational Structure Types of JobsTypes of Jobs
The Marketing Process The Marketing Process Challenges for the FutureChallenges for the Future
This lecture covers:This lecture covers: The Marketing Function - 5 PsThe Marketing Function - 5 Ps The Marketing DepartmentThe Marketing Department
Organizational StructureOrganizational Structure Types of JobsTypes of Jobs
The Marketing Process The Marketing Process Challenges for the FutureChallenges for the Future
What is What is MarketingMarketing??What is What is MarketingMarketing??
““Marketing is EverythingMarketing is EverythingYou Do to Help Sell a You Do to Help Sell a
Product/Service”Product/Service”
““Marketing is Everything”Marketing is Everything”““Marketing is Everything”Marketing is Everything” Marketing has become the dominant and Marketing has become the dominant and
often most critical business functionoften most critical business function Manufacturing techniques and resources Manufacturing techniques and resources
are now less critical, often easy to obtainare now less critical, often easy to obtain Brand equity and intellectual capital are Brand equity and intellectual capital are
now more critical, harder to duplicatenow more critical, harder to duplicate Business is evolving from manufacture of Business is evolving from manufacture of
goods to manufacture of “thinking”goods to manufacture of “thinking”
Marketing has become the dominant and Marketing has become the dominant and often most critical business functionoften most critical business function
Manufacturing techniques and resources Manufacturing techniques and resources are now less critical, often easy to obtainare now less critical, often easy to obtain
Brand equity and intellectual capital are Brand equity and intellectual capital are now more critical, harder to duplicatenow more critical, harder to duplicate
Business is evolving from manufacture of Business is evolving from manufacture of goods to manufacture of “thinking”goods to manufacture of “thinking”
““The Five P’s”The Five P’s”““The Five P’s”The Five P’s”
1. Product1. Product1. Product1. Product Product may be “tangible”Product may be “tangible”
Packaged goodsPackaged goods Durable goodsDurable goods
Product may be a serviceProduct may be a service Product may be a combinationProduct may be a combination Products are “bundles of benefits”Products are “bundles of benefits”
Product may be “tangible”Product may be “tangible” Packaged goodsPackaged goods Durable goodsDurable goods
Product may be a serviceProduct may be a service Product may be a combinationProduct may be a combination Products are “bundles of benefits”Products are “bundles of benefits”
2. Price2. Price2. Price2. Price Key part of “Key part of “value equationvalue equation”” At the price, product must have some measure of At the price, product must have some measure of
““functional superiorityfunctional superiority.”.” Price must also contain Price must also contain marginmargin
For funding of necessary activities...For funding of necessary activities... and and profitprofit
Price can send additional signalsPrice can send additional signals Can be a strategy in itself, or, more likely, part of Can be a strategy in itself, or, more likely, part of
a strategya strategy
Key part of “Key part of “value equationvalue equation”” At the price, product must have some measure of At the price, product must have some measure of
““functional superiorityfunctional superiority.”.” Price must also contain Price must also contain marginmargin
For funding of necessary activities...For funding of necessary activities... and and profitprofit
Price can send additional signalsPrice can send additional signals Can be a strategy in itself, or, more likely, part of Can be a strategy in itself, or, more likely, part of
a strategya strategy
3. Place (distribution)3. Place (distribution)3. Place (distribution)3. Place (distribution) Similar products can make different Similar products can make different
“place” decisions“place” decisions Example: CoffeeExample: Coffee
FolgersFolgers
Similar products can make different Similar products can make different “place” decisions“place” decisions
Example: CoffeeExample: Coffee FolgersFolgers
Similar products can make different Similar products can make different “place” decisions“place” decisions
Example: CoffeeExample: Coffee FolgersFolgers GevaliaGevalia
Similar products can make different Similar products can make different “place” decisions“place” decisions
Example: CoffeeExample: Coffee FolgersFolgers GevaliaGevalia
3. Place3. Place3. Place3. Place
3. Place3. Place3. Place3. Place Similar products can make different Similar products can make different
“place” decisions“place” decisions Example: CoffeeExample: Coffee
FolgersFolgers GevaliaGevalia StarbucksStarbucks
Similar products can make different Similar products can make different “place” decisions“place” decisions
Example: CoffeeExample: Coffee FolgersFolgers GevaliaGevalia StarbucksStarbucks
4. Promotion4. Promotion4. Promotion4. Promotion A range of marketing communications A range of marketing communications
(MarCom) techniques can be used:(MarCom) techniques can be used: AdvertisingAdvertising Sales PromotionSales Promotion Public RelationsPublic Relations PublicityPublicity Internet/New MediaInternet/New Media
A range of marketing communications A range of marketing communications (MarCom) techniques can be used:(MarCom) techniques can be used: AdvertisingAdvertising Sales PromotionSales Promotion Public RelationsPublic Relations PublicityPublicity Internet/New MediaInternet/New Media
Direct SalesDirect Sales Direct MarketingDirect Marketing Event MarketingEvent Marketing Trade ShowsTrade Shows Promotional Promotional
ProductsProducts
Direct SalesDirect Sales Direct MarketingDirect Marketing Event MarketingEvent Marketing Trade ShowsTrade Shows Promotional Promotional
ProductsProducts
5. People5. People5. People5. People Some controversy over the fifth PSome controversy over the fifth P
Once, some said “packaging”Once, some said “packaging” One consultant says “personalization”One consultant says “personalization” Another says “playback”Another says “playback” We say it’s “People.”We say it’s “People.”
Your customersYour customers Your own peopleYour own people Other “stakeholders”Other “stakeholders”
Sales Force, Trade, SuppliersSales Force, Trade, Suppliers
Some controversy over the fifth PSome controversy over the fifth P Once, some said “packaging”Once, some said “packaging” One consultant says “personalization”One consultant says “personalization” Another says “playback”Another says “playback” We say it’s “People.”We say it’s “People.”
Your customersYour customers Your own peopleYour own people Other “stakeholders”Other “stakeholders”
Sales Force, Trade, SuppliersSales Force, Trade, Suppliers
The Marketing MixThe Marketing MixThe Marketing MixThe Marketing Mix Demand Demand
Example: Price/SupplyExample: Price/Supply
Marketing VariablesMarketing Variables Five P VariablesFive P Variables Promotion MixPromotion Mix
Marketing Strategy . . .Marketing Strategy . . .
Demand Demand Example: Price/SupplyExample: Price/Supply
Marketing VariablesMarketing Variables Five P VariablesFive P Variables Promotion MixPromotion Mix
Marketing Strategy . . .Marketing Strategy . . .
Unique CombinationsUnique CombinationsUnique Marketing StrategiesUnique Marketing StrategiesUnique CombinationsUnique CombinationsUnique Marketing StrategiesUnique Marketing Strategies
Example: Example: Early auto industryEarly auto industry
Ford - Product/PriceFord - Product/Price
Example: Example: Early auto industryEarly auto industry
Ford - Product/PriceFord - Product/Price
GM - Multiple BrandsGM - Multiple Brands GM - Multiple BrandsGM - Multiple Brands
GM - Product/ValueGM - Product/Value GM - Product/ValueGM - Product/Value
Unique CombinationsUnique CombinationsUnique Marketing StrategiesUnique Marketing StrategiesUnique CombinationsUnique CombinationsUnique Marketing StrategiesUnique Marketing Strategies
Example: Example: Early auto industryEarly auto industry
Ford - Product/PriceFord - Product/Price
Example: Example: Early auto industryEarly auto industry
Ford - Product/PriceFord - Product/Price
GM - Multiple BrandsGM - Multiple Brands GM - Multiple BrandsGM - Multiple Brands
GM - Product/ValueGM - Product/Value GM - Product/ValueGM - Product/Value
Example: BoseExample: Bose Example: BoseExample: Bose Promotion + Place Promotion + Place Direct instead of storesDirect instead of stores Promotion + Place Promotion + Place Direct instead of storesDirect instead of stores
Marketing DepartmentsMarketing DepartmentsMarketing DepartmentsMarketing Departments
Vertical OrganizationVertical Organization Traditional military “command” structureTraditional military “command” structure Clear lines of responsibilityClear lines of responsibility Seems to work best when there are Seems to work best when there are
numerous similar productsnumerous similar products
Horizontal OrganizationHorizontal Organization More fluid “ad hoc” structure More fluid “ad hoc” structure Organize around needs and functionsOrganize around needs and functions
Vertical OrganizationVertical Organization Traditional military “command” structureTraditional military “command” structure Clear lines of responsibilityClear lines of responsibility Seems to work best when there are Seems to work best when there are
numerous similar productsnumerous similar products
Horizontal OrganizationHorizontal Organization More fluid “ad hoc” structure More fluid “ad hoc” structure Organize around needs and functionsOrganize around needs and functions
2 Types of Organization2 Types of Organization2 Types of Organization2 Types of Organization
Top Job Functions:Top Job Functions:Top Job Functions:Top Job Functions: For both types of organizationsFor both types of organizations CEO, COO, CMOCEO, COO, CMO
Chief Executive OfficerChief Executive Officer Chief Operating OfficerChief Operating Officer Chief Marketing OfficerChief Marketing Officer
Top Marketing personTop Marketing person CFO, CIOCFO, CIO
Chief Financial OfficerChief Financial Officer Chief Information OfficerChief Information Officer
For both types of organizationsFor both types of organizations CEO, COO, CMOCEO, COO, CMO
Chief Executive OfficerChief Executive Officer Chief Operating OfficerChief Operating Officer Chief Marketing OfficerChief Marketing Officer
Top Marketing personTop Marketing person CFO, CIOCFO, CIO
Chief Financial OfficerChief Financial Officer Chief Information OfficerChief Information Officer
Vertical OrganizationVertical OrganizationVertical OrganizationVertical Organization Example: Oscar Mayer (KGF) Example: Oscar Mayer (KGF)
Consumer ProductsConsumer Products Example: Oscar Mayer (KGF) Example: Oscar Mayer (KGF)
Consumer ProductsConsumer Products
AssistantBrand
Manager
BrandManager
Ham
AssistantBrand
Manager
BrandManagerTurkey
BrandManagerAssorted
Category ManagerLunch Pak
BrandAssistant
AssistantBrand
Manager
BrandManagerMain Line
BrandManagerSmokies
BrandManager
NewProducts
Category ManagerHot Dogs
AssistantBrand
Manager
BrandManagerBacon &Sausage
BrandAssistant
AssistantBrand
Manager
BrandManager
NewProducts
Category ManagerBreakfast/New Products
V.P.Marketing
Horizontal OrganizationHorizontal OrganizationHorizontal OrganizationHorizontal Organization Example: McDonnell-Douglas (2 groups)Example: McDonnell-Douglas (2 groups) Example: McDonnell-Douglas (2 groups)Example: McDonnell-Douglas (2 groups)
Trade Shows
Advertising
MarketingManager
Navy CustomerCustomer
Foreign CustomersCustomers
Suppliers
Plant
ProductionManager
CostAccounting
FinanceManager
R & DManager
VP, F/A-18
Trade Shows
Advertising
MarketingManager
Air ForceCustomer
PlantManager
ProductionManager
CostAccounting
FinanceManager
VP, F-15
COO, Sr. VP
CEO
Marketing Job FunctionsMarketing Job FunctionsMarketing Job FunctionsMarketing Job Functions Director of Marketing Director of Marketing
Often, trained w. “feeder system”Often, trained w. “feeder system” P&G, KGF, etc.P&G, KGF, etc. Has become COO career pathHas become COO career path
Must manage increasing variety of MarCom Must manage increasing variety of MarCom programs and suppliersprograms and suppliers
Advertising DirectorAdvertising Director Importance depends on size of budgetImportance depends on size of budget May also have significant responsibilities monitoring May also have significant responsibilities monitoring
media spendingmedia spending
Director of Marketing Director of Marketing Often, trained w. “feeder system”Often, trained w. “feeder system”
P&G, KGF, etc.P&G, KGF, etc. Has become COO career pathHas become COO career path
Must manage increasing variety of MarCom Must manage increasing variety of MarCom programs and suppliersprograms and suppliers
Advertising DirectorAdvertising Director Importance depends on size of budgetImportance depends on size of budget May also have significant responsibilities monitoring May also have significant responsibilities monitoring
media spendingmedia spending
Marketing Job Functions Marketing Job Functions Marketing Job Functions Marketing Job Functions Category Manager Category Manager
Group Product ManagerGroup Product Manager
Category Manager Category Manager Group Product ManagerGroup Product Manager
Bridgette HellerBridgette Heller - from from Brand ManagerBrand Manager GevaliaGevalia to to Category ManagerCategory Manager for for Coffee at KGFCoffee at KGF
Bridgette HellerBridgette Heller - from from Brand ManagerBrand Manager GevaliaGevalia to to Category ManagerCategory Manager for for Coffee at KGFCoffee at KGF
Brand ManagerBrand Manager Brand AssistantBrand Assistant Other Staff Functions:Other Staff Functions:
Sales Promotion Sales Promotion MediaMedia Market ResearchMarket Research
Field Marketing…Field Marketing…
Brand ManagerBrand Manager Brand AssistantBrand Assistant Other Staff Functions:Other Staff Functions:
Sales Promotion Sales Promotion MediaMedia Market ResearchMarket Research
Field Marketing…Field Marketing…
Field MarketingField MarketingField MarketingField Marketing Excellent entry level job opportunityExcellent entry level job opportunity There are many marketers that operate There are many marketers that operate Field Field
Marketing OrganizationsMarketing Organizations Beverage Industry (Beer, Soft Drink)Beverage Industry (Beer, Soft Drink) Fast Food IndustryFast Food Industry Franchise OrganizationsFranchise Organizations In many cases, ad agencies that service these In many cases, ad agencies that service these
marketers also provide Field Marketingmarketers also provide Field Marketing
“ “Think Global. Act Local.”Think Global. Act Local.”
Excellent entry level job opportunityExcellent entry level job opportunity There are many marketers that operate There are many marketers that operate Field Field
Marketing OrganizationsMarketing Organizations Beverage Industry (Beer, Soft Drink)Beverage Industry (Beer, Soft Drink) Fast Food IndustryFast Food Industry Franchise OrganizationsFranchise Organizations In many cases, ad agencies that service these In many cases, ad agencies that service these
marketers also provide Field Marketingmarketers also provide Field Marketing
“ “Think Global. Act Local.”Think Global. Act Local.”
The Marketing ProcessThe Marketing ProcessThe Marketing ProcessThe Marketing Process
PlanningPlanning ImplementationImplementation EvaluationEvaluation
PlanningPlanning ImplementationImplementation EvaluationEvaluation
PlanningPlanningPlanningPlanning1. Setting overall marketing strategy1. Setting overall marketing strategy
2. Developing annual marketing plan2. Developing annual marketing plan
3. Calculating annual marketing budget3. Calculating annual marketing budget
4. Assigning marketing tasks (planning)4. Assigning marketing tasks (planning)
1. Setting overall marketing strategy1. Setting overall marketing strategy
2. Developing annual marketing plan2. Developing annual marketing plan
3. Calculating annual marketing budget3. Calculating annual marketing budget
4. Assigning marketing tasks (planning)4. Assigning marketing tasks (planning)
ImplementationImplementationImplementationImplementation4. Assigning marketing tasks (continued)4. Assigning marketing tasks (continued)
After budgets approved, operations move from the After budgets approved, operations move from the theoretical to the practicaltheoretical to the practical
NOTE: Actual costs may vary from budget - plans NOTE: Actual costs may vary from budget - plans may need to be changed “on the fly”may need to be changed “on the fly”
5. Supervising internal functions5. Supervising internal functions NOTE: PR may be internal, external or bothNOTE: PR may be internal, external or both
6. Overseeing external services6. Overseeing external services Advertising, sales promotion, etc.Advertising, sales promotion, etc. NOTE: Variety of MarCom program options is NOTE: Variety of MarCom program options is
growinggrowing
4. Assigning marketing tasks (continued)4. Assigning marketing tasks (continued) After budgets approved, operations move from the After budgets approved, operations move from the
theoretical to the practicaltheoretical to the practical NOTE: Actual costs may vary from budget - plans NOTE: Actual costs may vary from budget - plans
may need to be changed “on the fly”may need to be changed “on the fly”
5. Supervising internal functions5. Supervising internal functions NOTE: PR may be internal, external or bothNOTE: PR may be internal, external or both
6. Overseeing external services6. Overseeing external services Advertising, sales promotion, etc.Advertising, sales promotion, etc. NOTE: Variety of MarCom program options is NOTE: Variety of MarCom program options is
growinggrowing
Evaluation:Evaluation:Evaluation:Evaluation:7. Measuring and tracking efforts7. Measuring and tracking efforts
Sales ResultsSales Results Media ExpendituresMedia Expenditures Awareness and UsageAwareness and Usage Ongoing Market Research programs (tracking studies)Ongoing Market Research programs (tracking studies)
8. Reporting performance to management 8. Reporting performance to management NOTE: May be daily, weekly, or quarterly. Trend is NOTE: May be daily, weekly, or quarterly. Trend is
for more frequent reportingfor more frequent reporting
9. Integrating results into planning9. Integrating results into planning The cycle continues - working for improvement The cycle continues - working for improvement
wherever possiblewherever possible
7. Measuring and tracking efforts7. Measuring and tracking efforts Sales ResultsSales Results Media ExpendituresMedia Expenditures Awareness and UsageAwareness and Usage Ongoing Market Research programs (tracking studies)Ongoing Market Research programs (tracking studies)
8. Reporting performance to management 8. Reporting performance to management NOTE: May be daily, weekly, or quarterly. Trend is NOTE: May be daily, weekly, or quarterly. Trend is
for more frequent reportingfor more frequent reporting
9. Integrating results into planning9. Integrating results into planning The cycle continues - working for improvement The cycle continues - working for improvement
wherever possiblewherever possible
Marketing Challenges:Marketing Challenges:Marketing Challenges:Marketing Challenges: Increasing importance of marketingIncreasing importance of marketing
As mentioned, As mentioned, “Marketing is Everything”“Marketing is Everything” the the function is more important for everyonefunction is more important for everyone
Hyper-CompetitionHyper-Competition Too much capacity for size of marketToo much capacity for size of market Happening on a global scaleHappening on a global scale Examples: Automobiles, computersExamples: Automobiles, computers
FragmentationFragmentation Consumers, Media, etc. Consumers, Media, etc. Harder to do “mass” marketingHarder to do “mass” marketing
Increasing importance of marketingIncreasing importance of marketing As mentioned, As mentioned, “Marketing is Everything”“Marketing is Everything” the the
function is more important for everyonefunction is more important for everyone Hyper-CompetitionHyper-Competition
Too much capacity for size of marketToo much capacity for size of market Happening on a global scaleHappening on a global scale Examples: Automobiles, computersExamples: Automobiles, computers
FragmentationFragmentation Consumers, Media, etc. Consumers, Media, etc. Harder to do “mass” marketingHarder to do “mass” marketing
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