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marketing strategy

Marketing in Todays Economy

Prof. Vikram Parekh on Marketing Strategy @2009

marketing strategy
Introduction The challenges and opportunities of marketing in todays economy Basic marketing concepts Major marketing activities & decisions Taking on the challenges of marketing strategy

Prof. Vikram Parekh on Marketing Strategy @2009

The Challenges and Opportunities Of Marketing in Todays Economy


Power Shift to Customers Massive Increase in Product Selection Audience and Media Fragmentation Changing Value Propositions Shifting Demand Patterns New Sources of Competitive Advantage Privacy, Security, and Ethical Concerns Unclear Legal Jurisdiction
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Prof. Vikram Parekh on Marketing Strategy @2009

The Childrens Online Privacy Protection Act (COPPA)

Prof. Vikram Parekh on Marketing Strategy @2009

Exhibit 1.2

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Discussion Question
Increasing customer power is a challenge to marketers in todays economy. In what ways have you personally experienced this shift in power; either as a customer or as a business person? Is this power shift uniform across industries and markets? How so?

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Prof. Vikram Parekh on Marketing Strategy @2009

Basic Marketing Concepts


Marketing (AMA 2005 definition)
an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Market
A collection of buyers and sellers

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Prof. Vikram Parekh on Marketing Strategy @2009

Basic Marketing Concepts


Marketspace
Electronic marketplaces that are not bound by time or space

Metamarket
A cluster of closely related goods and services that center around a specific consumption activity

Metamediary
Provides a single access point where buyers can locate and contact many different sellers in the metamarket

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Prof. Vikram Parekh on Marketing Strategy @2009

Common Metamarkets and Participants

Prof. Vikram Parekh on Marketing Strategy @2009

Exhibit 1.3

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What is Exchange?
Exchange
Process of obtaining something of value by offering something in return

Five Conditions of Exchange


There must be at least two parties to the exchange. Each party has something of value to the other party. Each party must be capable of communication and delivery. Each party must be free to accept or reject the exchange. Each party believes it is desirable to exchange with the other party.
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Prof. Vikram Parekh on Marketing Strategy @2009

What is a Product?
Product
Something that can be acquired via exchange to satisfy a need or a want

Examples
Goods Services Ideas Information Digital Products People Places Experiences and Events Real or Financial Property Organizations
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Prof. Vikram Parekh on Marketing Strategy @2009

The Concept of Utility


Utility
Ability of a product to satisfy a customers desires

Five Types of Utility


Form Utility Time Utility Place Utility Possession Utility Psychological Utility

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Prof. Vikram Parekh on Marketing Strategy @2009

Major Marketing Activities and Decisions (1 of 5)


Strategic Planning
Strategy Tactical Planning Marketing Plan

Social Responsibility and Ethics


Social Responsibility Marketing Ethics

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Prof. Vikram Parekh on Marketing Strategy @2009

Discussion Question
How concerned are you about privacy and security in todays economy? Are you more concerned about online security or about the potential ramifications of RFID technology? Will these issues still be important in 10 years? Explain.

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Prof. Vikram Parekh on Marketing Strategy @2009

Major Marketing Activities and Decisions (2 of 5)


Research and Analysis
Internal Analysis Competitive Intelligence Environmental Scanning Situation Analysis

Developing Competitive Advantage


Competitive Advantage SWOT Analysis

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Prof. Vikram Parekh on Marketing Strategy @2009

Major Marketing Activities and Decisions (3 of 5)


Marketing Strategy Decisions
Market Segmentation and Target Marketing Product Decisions Product Positioning Pricing Decisions Leads to revenue and profit Directly connected to customer demand Easy to change Major quality cue for customers

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Prof. Vikram Parekh on Marketing Strategy @2009

Online Social Networking


Social networking sites like MySpace.com, LinkedIn.com, and Facebook.com have been criticized for questionable content and easy access to predators. How can advertisers balance the opportunities presented by these sites with the risk?

Beyond the Pages 1.2


Prof. Vikram Parekh on Marketing Strategy @2009

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Major Marketing Activities and Decisions (4 of 5)


Marketing Strategy Decisions (continued)
Distribution and Supply Chain Decisions Distribution and Supply Chain Management Supply Chain Effectiveness Promotion Decisions Integrated Marketing Communications (IMC)

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Prof. Vikram Parekh on Marketing Strategy @2009

Major Marketing Activities and Decisions (5 of 5)


Implementation and Control
Marketing Implementation

Developing and Maintaining Customer Relationships


Transactional Marketing Relationship Marketing

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Prof. Vikram Parekh on Marketing Strategy @2009

Major Characteristics of Transactional and Relationship Marketing

Exhibit 1.4

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Prof. Vikram Parekh on Marketing Strategy @2009

Taking on the Challenges of Developing Marketing Strategy (1 of 2) Unending Change People-Driven Nature of Marketing Lack of Rules for Choosing Marketing Activities Basic Evolution of Marketing & Business Practice Increasing Demands of Customers Overall Decline in Brand Loyalty & Increase in Price Sensitivity
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Prof. Vikram Parekh on Marketing Strategy @2009

Discussion Question
The text argues that marketing possesses very few rules for choosing the appropriate marketing activities. Can you describe any universal rules of marketing that might be applied to most products, markets, customers, and situations?

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Prof. Vikram Parekh on Marketing Strategy @2009

Taking on the Challenges of Developing Marketing Strategy (2 of 2) Competing in Mature Markets


Increasing commoditization Little real differentiation among product offerings

Increasing Expansion into Foreign Markets Aggressive Cost-Cutting Measures Increasing Cooperation with Supply Chain Partners and Competitors
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Prof. Vikram Parekh on Marketing Strategy @2009

Marketing Strategy in Action


Increasing expansion into foreign markets is becoming a necessity to compete in the global marketplace. What kind of opportunities and threats are presented by the increasing global nature of the marketplace?

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Prof. Vikram Parekh on Marketing Strategy @2009