CoreConceptsofMarketingT1Products(goods,services,andideas)Value,cost,andsatisfactionNeeds,wants,anddemandsExchangeandtransactionsRelationshipsandnetworksMarketsMarketersandprospectsFig.1.02FlowStructureinaModernExchangeEconomyT2GovernmentmarketsManufacturermarketsConsumermarketsIntermediarymarketsResourcemarketsTaxes,goodsMoneyMoneyServices,moneyServices,moneyTaxesTaxes,goodsServices,moneyServicesTaxes,goodsGoods,servicesGoods,servicesResourcesMoneyMoneyResourcesFig.1.05ActorsandForcesinaModernMarketingSystemT3EnvironmentSuppliersCompany(marketer)Marketinginter-mediariesEnd-usermarketCompetitorsFig.1.06SellingandMarketingConceptsContrastedT4FactoryExistingproductsSellingandpromotionProfitsthroughsalesvolumeTargetmarketIntegratedmarketingProfitsthroughcustomersatisfactionCustomerneedsStartingpointFocusMeansEnds(b)Themarketingconcept(a)ThesellingconceptFig.1.07EvolvingViewsofMarketing’sRoleT5aa.Marketingasanequalfunctionb.MarketingasamoreimportantfunctionFinanceProductionMarketingHumanresourcesFinanceHumanresourcesMarketingProductionFig.1.09EvolvingViewsofMarketing’sRoleT5bFig.1.09c.Marketingasthemajorfunctiond.ThecustomerasthecontrollingfactorMarketingProductionCustomerEvolvingViewsofMarketing’sRoleT5cFig.1.09e.ThecustomerasthecontrollingfunctionandmarketingastheintegrativefunctionCustomerMarketingProductionDeterminantsofCustomerDeliveredValueProductvalueServicesvaluePersonnelvalueImagevalueMonetarycostTimecostEnergycostTotalcustomervalueT6PsychiccostTotalcustomercostCustomerdeliveredvalueT6Fig.2.01TheGenericValueChainFig.2.03T7PrimaryActivitiesSupportActivitiesFirminfrastructureHumanresourcemanagementTechnologydevelopmentProcurementInboundlogisticsOutboundlogisticsMarketingandsalesServiceOpera-tionsLeviStrauss’Value-DeliveryNetworkT8OrderDuPont(Fibers)Milliken(Fabric)Levi’s(Apparel)Sears(Retail)Competitionisbetweennetworks,notcompanies.Thewinneristhecompanywiththebetternetwork.Fig.2.04CustomerOrderOrderOrderDeliveryDeliveryDeliveryDeliveryLevelsofRelationshipMarketingFig.2.06T9Manycustomers/distributorsMediumnumberofcustomers/distributorsFewcustomers/distributorsAccountableProactivePartnershipProactiveAccountableReactiveAccountableReactiveBasicorreactiveHighmarginMediummarginLowmarginTheProfitTriangleFig.2.08T10ProfitCompetitiveadvantageStrategicPlanning,Implementation,andControlProcessT11CorporateplanningDivisionplanningBusinessplanningProductplanningOrganizingImplementingMeasuringresultsDiagnosingresultsTakingcorrectiveactionFig.3.01PlanningImplementationControlTheBostonConsultingGroup’sGrowth-ShareMatrixT123?10x4x2x1.5x1x20%-18%-16%-14%-12%-10%-8%-6%-4%-2%-0MarketgrowthrateRelativemarketshareStarsCashcowQuestionmarksDogs?5421687.5x.4x.3x.2x.1xFig.3.03MarketAttractiveness:Competitive-PositionPortfolioClassificationFig.3.04T13StrongMediumWeakBUSINESSSTRENGTHMARKETATTRACTIVENESS5.003.672.331.00LowMediumHighHydraulicpumpsJointsClutchesFlexiblediaphragmsAerospacefittingsFuelpumpsReliefvalve1.002.333.675.00Invest/growSelectivity/earningsHarvest/divestTheStrategic-PlanningGapFig.3.05T14DesiredsalesDiversificationgrowthIntegrativegrowthIntensivegrowthCurrentportfolioSalesTime(years)Strategic-planninggap1050ThreeIntensiveGrowthStrategies:Ansoff’sProduct/MarketExpansionGridT151.Market-penetrationstrategy(Diversificationstrategy)3.Product-developmentstrategy2.Market-developmentstrategyCurrentmarketsNewmarketsCurrentproductsNewproductsFig.3.06OpportunityMatrixT16a1423HighLowHighLowAttractivenessSuccessProbabilityFig.3.081.Companydevelopsamorepowerfullightingsystem2.Companydevelopsadeviceformeasuringtheenergyefficiencyofanylightingsystem3.Companydevelopsadeviceformeasuringilluminationlevel4.CompanydevelopsasoftwareprogramtoteachlightingfundamentalstoTVstudiopersonnelOpportunitiesThreatMatrixT16b1423HighLowHighLowSeriousnessProbabilityofOccurrenceFig.3.081.Competitordevelopsasuperiorlightingsystem2.Majorprolongedeconomicdepression3.Highercosts4.LegislationtoreducenumberofTVstudiolicensesThreatsTheMcKinsey7-SFrameworkSkillsStrategyStructureSystemsT17SharedvaluesStaffStyleFig.3.09Marketing-MixStrategySalespromotionAdvertisingSalesforcePublicrelationsDirectmailandtelemarketingTargetcustomersDistri-butionchannelsPromotionMixFig.3.13T19CompanyProductsServicesPricesOfferMixFactorsInfluencingCompanyMarketingStrategyT20TargetcustomersProductPromotionPlacePriceDemographic/economicenvironmentSocial/culturalenvironmentTechnological/physicalenvironmentPolitical/legalenvironmentCompetitorsMarketingintermediariesPublicsSuppliersFig.3.14TheMarketingInformationSystemT21MarketingmanagersAnalysisPlanningImplemen-tationControlAssessinginformationneedsDistributinginformationInternalrecordsMarketingdecisionsandcommunicationMarketingenvironmentTestmarketsMarketingchannelsCompetitorsPublicsMacro-environmentforcesMarketingInformationSystemDevelopinginformationMarketingintelligenceMarketingresearchMarketingdecisionsupportanalysisFig.4.01TheMarketingResearchProcessT22DefinetheproblemandresearchobjectivesFig.4.02DeveloptheresearchplanCollectthe