ObjectivesCourseOrganizationTasksofMarketingMajorConcepts&ToolsofMarketingMarketplaceOrientationsMarketing’sResponsestoNewChallengesDefiningMarketingMarketingisasocietalprocessbywhichindividualsandgroupsobtainwhattheyneedandwantthroughcreating,offering,andfreelyexchangingproductsandservicesofvaluewithothers.-PhilipKotler(p.7)SimpleMarketingSystemIndustry(acollectionofsellers)Market(acollectionofBuyers)Goods/servicesMoneyCommunicationInformationProductionConceptProductConceptSellingConceptMarketingConceptConsumerspreferproductsthatarewidelyavailableandinexpensiveConsumersfavorproductsthatofferthemostquality,performance,orinnovativefeaturesConsumerswillbuyproductsonlyifthecompanyaggressivelypromotes/sellstheseproductsFocusesonneeds/wantsoftargetmarkets&deliveringvaluebetterthancompetitorsCompanyOrientationsTowardstheMarketplaceObjectivesDefinevalue&satisfaction-understandhowtodeliverthemThenatureofhigh-performancebusinessesHowtoattract&retaincustomersImprovingcustomerprofitabilityTotalqualitymanagementResourcesOrganizationandaligning...HighPerformanceBusinessProcessesByimprovingcriticalbusiness...Stake-holdersSetstrategiestosatisfykey...SatisfiedCustomers:AreloyallongerBuymore(newproducts&upgrades)Spreadfavorableword-of-mouthAremorebrandloyal(lesspricesensitive)OfferfeedbackReducetransactioncostsInactiveorex-customersCustomerDevelopmentPartnersAdvocatesClientsRepeatcustomersFirst-timecustomersSuspectsProspectsDisqualifiedprospectsCustomer/ProductProfitabilityAnalysisP1HighlyprofitableproductP2ProfitableproductP3LosingproductP4Mixed-bagproductProducts+++Highprofitcustomer+-Mixed-bagcustomer+--LosingcustomerC1C2C3CustomersObjectivesCorporateanddivisionstrategicplaningBusinessunitplanningThemarketingprocessProductlevelplanningThemarketingplanMarket-OrientedStrategicPlanningObjectivesSkillsResourcesOpportunitiesMarket-OrientedStrategicPlanningObjectivesSkillsResourcesOpportunitiesProfitandGrowthCorporateHeadquartersPlanningDefinethecorporatemissionEstablishstrategicbusinessunits(SBUs)AssignresourcestoSBUsPlannewbusiness,downsizeolderbusinessesTheMarketingPlanExecutiveSummary&TableofContentsCurrentMarketingSituationOpportunity&IssueAnalysisObjectivesMarketingStrategyActionProgramsProjectedProfit-and-lossControlsObjectivesComponentsofamarketinginformationsystemCriteriaofgoodmarketingresearchDecisionsupportsystemsformarketingmanagementDemandmeasurementandforecastAmarketinginformationsystem(MIS)consistsofpeople,equipment,andprocedurestogather,sort,analyze,evaluate,anddistributeneeded,timely,andaccurateinformationtomarketingdecisionmakers.Amarketingintelligencesystemisasetofproceduresandsourcesusedbymanagerstoobtaineverydayinformationaboutdevelopmentsinthemarketingenvironment.ResearchApproachesBehavioralFocus-groupSurveyExperimentalObservationalSecondary-DataSourcesInternalSourcesGovernmentPublicationsPeriodicalsandBooksCommercialDataOn-LineAssociationsBusinessInformationGoodMarketingResearch:IsscientificIscreativeUsesmultiplemethodsRealizestheinterdependenceofmodels&dataAcknowledgesthecost&valueofinformationMaintains“healthy”skepticismIsethicalDemandMarketDemandCompanyDemandEstimatingCurrentDemandTotalMarketPotentialAreaMarketPotentialIndustrySalesMarketShareEstimatingFutureDemandSurveyofBuyers’IntentionsCompositeofSalesForceOpinionExpertOpinionPastSalesAnalysisMarketTestMethodObjectivesTracking&IdentifyingOpportunitiesintheMacroenvironmentDemographic,Economic,Natural,Technological,Political,&CulturalDevelopmentsMacroenvironmentalForcesWorldtradeenablersAsianeconomicpowerRiseoftradeblocsInternationalmonetarycrisesUseofbarter&countertradeMovetowardsmarketeconomies“Global”lifestylesMacroenvironmentalForcesOpeningof“new”marketsEmergingtransnationalfirmsCross-borderstrategicalliancesRegionalethnic&religiousconflictGlobalbrandingDemographicEnvironmentWorldwidePopulationGrowthPopulationAgeMixEthnicMarketsHouseholdPatternsEducationalGroupsGeographicalShiftsinPopulationShiftfromMassMarkettoMicromarketsEconomicEnvironmentIncomeDistributionSubsistenceeconomiesRaw-material-exportingeconomiesIndustrializingeconomiesIndustrialeconomiesSavings,Debt,&CreditAvailabilityNaturalEnvironmentHigherPollutionLevelsIncreasedCostsofEnergyShortageofRawMaterialsChangingRoleofGovernmentAcceleratingPaceofChangeUnlimitedOpportunitiesforInnovationIncreasedRegulationIssuesintheTechnologicalEnvironmentVaryingR&DBudgetsPolitical-LegalEnvironmentIncreasedLegislationSpecial-InterestGroupsSocial/CulturalEnvironmentOfOrganizationsOfNatureOfOneselfOfSocietyOftheUniverseOfOthersViewsThatExpressValuesSocial/CulturalEnvironmentObjectivesInfluencesonBuyingBehaviorBuyerDecisionMakingSimpleResponseModelStimulusOrganismResponseCultureCulturalFactorsSubcultureSocialClassBuyerSocialFactorsReferenceGroupsRoles&StatusesFamilyInfluencesonConsumerBehaviorPersonalInfluencesAgeandFamilyLifeCycleStageLifestyleOccupation&EconomicCircumstancesPersonality&Self-ConceptPsychologicalFactorsPerceptionLearningBe