MKTG 311 1st Edition Lecture 5Outline of Last Lecture I. Environmental ForcesA. Social ForcesB. Economic ForcesC. Technological ForcesD. Regulatory ForcesOutline of Current Lecture I. The Tools of Social ResponsibilityII. The Competitive Marketing Strategy Process (4 Steps for Success)A. Identify the company’s competitionsB. Assess the company’s objectives, strategies, strengths, weakness, and reaction patternsC. Select which competitors to attack or avoidD. Develop competitive marketing strategiesCurrent LectureI. The tools of Social Responsibility*Social Responsibility- Organizations that engage in activities that have a positive effect on society and promote the public good.- Tools of Social Responsibilityo Environmental Stewardship: Firms that make socially responsible business decisions that protect the environment. Known as Green Marketing, Product Design, Packaging, and the 4P’s. Example- Starbuckso Cause Marketing: A strategy of joining forces with a nonprofit to tackle a social issue (long term commitment). Example- Avon’s 700 Million Breast Cancer Crusadeo Cultural Diversity: Make sure that the hiring practices are fair (all can hire) and marketing practices are equitable. Does everyone have equal access to the product? Example- General MillsII. The Competitive Marketing Strategy Process (4 Steps for Success)A. Identify the company’s competitionsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.1) All competitors that offer similar products to the same customers at similar price (closest competitors). Example: Ford Fiesta, Honda Fit, Nissan Versa, Hyundai Accent.2) All competitors that offer same product/class of product. Example: Ford, Honda, Nissan, Hyundai Car.3) All companies that supply the same service (Industry view). Example: Car, truck, SUV companies (industry)4) All companies that compete for the same consumer dollar. Example: Automotive industry and other options (HRT, light rail, zip car, etc.)5) Define our competitors from a market point of view. Fuel efficiency (40mpq) safety- 10 airbags- technology equipped.*Competitor Myopia: Narrow view of competition. They consider their competition to same companies, selling the exact product through the same channels. Example: Amazon (book industry) and EBay (antique dealers)B. Assess the company’s objectives, strategies, strengths, weakness, and reactionpatterns.- Objectives: What is that our competition is most concerned about?*Profitability, sales, ROT?- Strategies: What strategies is our competition pursuing?o Innovationo Qualityo Priceo Customer Service- Strengths: What is our competition good at?- Weaknesses: What could our competition do better?C. Select which competitors to attack or avoid- Attack strongest competitors: Strength- lots of market share. Weakness- Risk- Attack weakest competitors: Strength- less risk. Weakness- Is it worth our time?- Should we attack our close competitors (direct substitutes)?- Should we attack distant competitors (different target market, different products, etc.)- Good competitors/ Bad competitors- Advantages to keeping the competition around (smart phone/mobile)o Increase total market demando Share the costs of market product developmento Help serve the less attractive market segmentso Help lower anti-trust risk and improving bargaining powerD. Develop competitive marketing strategies- Michael Porter’s 4 Basic Competitive Positioning Strategies:o Overall cost leadershipo Differentiationo Focuso