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Marketing ManagementMarketing Management

Dr. Zafer Erdogan

Marketing in the Twenty-First CenturyMarketing in the Twenty-First Century

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MarketingMarketingTraditionally,

Companies structured themselves in functional areas

However,Companies are breaking down these and working to

become customer-centric to create customer value.

Of course,It requires effective marketing!

And, what is marketing?

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The Scope of MarketingThe Scope of Marketing

Marketing: typically seen as the task of creating, pricing, promoting, and delivering goods and services to consumers and businesses.

Mutually satisfying exchange relationships.

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Managing Marketing effortsplanning, organizing, implementing, coordinating and controlling of marketing activities

Such as:

Analyzing markets, segmenting, choosing target markets, developing marketing mix and so on.

Marketing ManagementMarketing Management

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Marketing Managers JobMarketing Managers Job

Marketing managers try to influence the level, timing, and composition of demand to meet company’s objectives.

In other words,

Marketers are skilled in stimulating demand for a company’s product.

Surprise, Surprise!

Demand varies from product to product !

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Table 1.1Demand States and Marketing Tasks

1. Negative demand A major part of the market dislikes the product and may even pay a price to avoid it.Analyze why, lower prices, change attitudes

2. No demand Target consumers may be unaware of or uninterested in the product. Find ways to connect the benefits of product to needs & wants

3. Latent demand Consumers may have a strong need that cannot be satisfied by any existing product.Develop products and services

4. Declining demand Sooner or later every product faces a declineAnalyze the causes and re-stimulate

5. Irregular demand Varying demand on a seasonal, daily or even hourly bases. Synchronize

6. Full demand Companies are pleased! Maintain and Improve

7. Overfull demand Higher than what can be handled. Demarket permanently or temporarily

8. Unwholesome demand

Unwholesome products will attract organized efforts to discouraged their consumption.Get people give up using marketing tools

See p.7 for details

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Can you name a category of products Can you name a category of products for which your negative feelings have for which your negative feelings have softened? What precipitated this softened? What precipitated this change?change?

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Marketing ConceptsMarketing Concepts

Dramatic changes over the last 3 decades;– Focus on customers (vs. products and

selling)– Marketing globally (or lose out)– Understanding and responding technology

• Not just competing, but creating and innovating

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Changes in ConsumersChanges in Consumers1980s-Industrious

Baby Boomer

Conspicuous consumer Image driven Trusting Brand loyalEmotional buyerDreamersOverindulgentOverworked

1990s - Responsible Baby

Boomer

Frugal consumer Value driven Skeptical and cynical Does not even know

loyaltyInformed buyerEscapistsHealth, wellness-

consciousBurnt-out, stressed out

and placing tremendous value on convenience and time Responsible

2002-Generation XerSuspicious but well-off

Highly eclecticA "prove it" attitude Believes that there is

always something better

Highly informed and specialized

Focused on personal needs Health, wellness and some overindulgence, without expectation of costs or consequences

Reliant on technology and telecoms. to save time in making purchased decisions Unconvinced

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End of the Mass MarketsEnd of the Mass Markets

Will Database marketing replace Mass marketing?

It is in the process just as we speak!- 70s, only high-end retailers and personal-service firms

with personal selling and index-card files - 80s, as the mainframe computer became more practical, airlines got into the act with a proliferation of their frequent flyer programs. - 90s, bookstore chains, supermarkets, warehouse clubs, and restaurants tracked individual purchase transactions to build their "share of the customer.“- Nowadays, everyone is doing it with the virtually unlimited options, including on-site interactivity, Web site connections, fax-response, E-mail, and interactive television, mobile phones you name it...

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The Near Future…The Near Future…

• Very soon real-time interactivity with television sets and through the Internet.

• In ten years;– individuals will interact with their television and / or computer

simply by speaking to it.– The computer will remember your transactions and

preferences, getting smarter and smarter about finding just the right entertainment, information, products, and services.

– That same computer will also be able to anticipate what you might want, while being careful to protect you from commercial intrusions you don't find relevant or interesting.

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There is no longer a single mass market!There is no longer a single mass market!

Because the lifestyles have changed so dramatically.

Some of the important demographic shifts have been:– Increasing diversity of the population.– Changing family and living patterns.– Nearly all of today's children grow up in a

world of divorce and working mothers.

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In Sum,In Sum,

The need for market analysis and marketing decision-making, and managers to perform those tasks, has never been greater.

But, as the course will demonstrate, the complexities of, and analytical tools required for, these activities have never been greater.

Be prepared for a challenging experience.

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ExerciseExercise

The Typical Canadian Family

1950s 1975s 2000sfamily size :

income :

work status :

education :other Demo. factors :