Principles of Marketing BA 390What is Marketing?What do we do?Key TermsMarketing ManagementEvolutionManagerial ImperativeStrategic Planning ProcessDefining the MissionHarley-DavidsonSetting Objectives and GoalsBusiness Portfolio: BCG and FriendsPorter’s Generic StrategiesGrowth StrategiesMarketing Process: Segmentation, Targeting, and PositioningMarket TargetingMarket PositioningSlide 18Marketing EnvironmentsSlide 20Slide 21Slide 22Natural EnvironmentSlide 24Technological EnvironmentSlide 26Political EnvironmentSlide 28Principles of MarketingBA 390Fall 2006Dr. McAlexanderWhat is Marketing?Do you know your pharmacist?What about the person who made your shoes?What do we do?We facilitate exchange–Effectiveness–EfficiencyWho are our customers?Key TermsNeeds: Functional, Symbolic, and ExperientialWants: Culturally shaped needsDemands: Add buying powerProduct: Complex bundle of satisfactions.Marketing ManagementStrategic Planning and theMarketing ProcessEvolutionProduction OrientationProduct OrientationSelling OrientationMarketing Orientation: The Marketing ConceptSocietal Marketing Concept–Balance interests of consumer, society, and firmManagerial ImperativeMarketing Generates RevenueMandate: Attract, Retain, and Grow Customers–Customer value: differences between customer costs and benefits–Customer satisfaction, loyalty, and retentionCustomer Equity: Combined Customer Lifetime ValuesStrategic Planning ProcessDefine the MissionSet ObjectivesAnd GoalsDesign BusinessPortfolioDefining the MissionStatement of purpose–Market OrientedProduct orientation could be short-sightedBased on Distinctive CompetenciesMotivatingHarley-DavidsonWe fulfill dreams through the experience of motorcycling,by providing to motorcyclists and to the general publican expanding line of motorcycles and branded products and servicesin selected market segments.Setting Objectives and GoalsObviously relate to mission statementTime specific and measurableBusiness Portfolio: BCG and FriendsHigh Share Low ShareHighGrowthLowGrowthPorter’s Generic StrategiesLow CostDifferentiationFocusGrowth StrategiesExisting Products and Markets:–Market PenetrationExisting Products and New Markets–Market DevelopmentNew Products and Existing Markets–Product DevelopmentNew Products and New Markets–DiversificationMarketing Process: Segmentation, Targeting, and PositioningMarket Segmentation–Demographic–Benefit–PsychographicMarket TargetingChoose to serve one or more segmentsFit with abilities and resources of the firm.Competitive intensityMarket PositioningThe place the product occupies in the mind of the consumer relative to the competition.http://www.buell.com/Marketing MixPRODUCTPLACEPRICEPROMOTIONMarketing EnvironmentsMicro Environments–The companyMarketing EnvironmentsMicro Environments–The company–Suppliers–Marketing Intermediaries–Customers–Competitors–PublicsMarketing EnvironmentsMacro Environments–DemographicAgeEthnicityGeographic shiftsIncome distributionMarketing EnvironmentsMacro Environments–Demographic–Economic–NaturalNatural EnvironmentNatural Resources and Marketing Perspectives–Market Segments–Impacts upon the environmentMarketing EnvironmentsMacro Environments–Demographic–Economic–Natural –TechnologicalTechnological EnvironmentWSJ–Having babies: prenatal screening…–Stay in touch with families: myfamily.com–Find love: 73% of singles use the internet–Watch TV and listen to the radio–Fandom–ShopMarketing EnvironmentsMacro Environments–Demographic–Economic–Natural –Technological –PoliticalPolitical EnvironmentImpact of legislation: all levels of government–Pricing: price discrimination (Robinson-Patman Act)–Product: unsafe toys and articles (Child Protection Act also Consumer Product Safety Act) and warranties (Manuson-Moss Warranty Act)Marketing EnvironmentsMacro Environments–Demographic–Economic–Natural –Technological –Political