Marketing
Building Blueprints for Business
Marketing
System
Marketers Advertisers
 Many different types of marketers
 Packaged goods
Durable good
Services
Retailers
High Tech
And more
But they all have similar methodologies and organizations
Marketer:
Controls the product…
RESELLER...
sells, but does
not control the
product
Marketer:
“Marketing is Everything”
 Marketing has become the dominant and often most critical business function
 Manufacturing techniques and resources are now less critical, often easy to obtain
 Brand equity and intellectual capital are now more critical, harder to duplicate
 Business is evolving from manufacture of goods to manufacture of “thinking”
Chart:
Current Customers:
...consumers and business users
The Environment:
...those who affect the
system but who are not
in it, including...
COMPETITORS
MARKETING
SYSTEMS
MARKET INFLUENCERS
POTENTIAL CUSTOMERS...
Consumers and Business
Users not yet in market.
REGULATORY AGENCIES...
Government and Industry
NON-MARKET AUDIENCES...
Employees, voters, citizen groups, legislators
Chart
“The Five P’s”
 Five Critical Marketing Decisions
 Product
 Price
 Place (physical distribution)
 Promotion
 All types of promotional activities
 Advertising, Sales Promotion, PR, etc.
 “The Fifth P”
 People
Four Major Questions:
1. What product will be produced?
2. How much will it cost?
3. Where will it be sold?
4. How will it be promoted?
1. Product
 Product may be “tangible”
 Packaged goods
 Durable goods
 Product may be a service
 Product may be a combination
 Products are “bundles of benefits”
2. Price
 Key part of “value equation”
 At the price, product must have some measure of “functional superiority.”
 Price must also contain margin
 For funding of necessary activities...
 and profit
 Price can send additional signals
 Can be a strategy in itself, or, more likely, part of a strategy
3. Place
 Similar products can make different “place” decisions
 Example: Coffee
 Folgers
3. Place
 Similar products can make different “place” decisions
 Example: Coffee
 Folgers
 Gevalia
 Starbucks
A critical decision
4. Promotion
 A range of marketing communications (MarCom) techniques can be used:
 Advertising
 Sales Promotion
 Public Relations
 Publicity
 Internet/New Media
Direct Sales
Direct Marketing
Event Marketing
Trade Shows
Promotional Products
Promotion...activities marketer and resellers
use to stimulate the flow of the product.
PERSONAL SELLING...
marketer communicates with only a few prospects at a time.
ADVERTISING...
marketer communicates with large number of prospects at once using mass media.
SALES PROMOTION...
Special incentives to attract attention to the product.
PUBLICITY...
free news coverage in the mass media about marketer’s activities.
5. People
 Some controversy over the fifth P
 Once, some said “packaging”
 One consultant says “personalization”
 We say it’s “People.”
 Your customers
 Your own people
 Other “stakeholders”
 Sales Force, Trade, Suppliers
TARGET MARKET:
user of product
TARGET AUDIENCE:
target of promotion message.
Target markets may be...
Current customers,
Competitor’s customers
Potential customers
Target audiences
may be in the
marketer’s system...
Or in the
environment...
Current Customers
Competitors’ Customers
Potential Customers
Market influencers
Non-market Audiences
Unique Combinations
Unique Marketing Strategies
 Example: Early auto industry
 Ford - Product/Price
GM – Product/Value
GM – multiple brands
Marketing Departments
 Vertical Organization
 Traditional military “command” structure
 Clear lines of responsibility
 Seems to work best when there are numerous similar products
 Horizontal Organization
 More fluid “ad hoc” structure
 Organize around needs and functions
Top Job Functions:
 For both types of organizations
 CEO, COO, CMO
 Chief Executive Officer
 Chief Operating Officer
 Chief Marketing Officer
 Top Marketing person
 “Heavy hitter” 35+
 CFO, CIO
 Chief Financial Officer
 Chief Information Officer
Vertical Organization
 Example: Oscar Mayer (KGF)
Consumer Products
Chart:
Pg. 211
Jobs in Vertical Organization
 Category Manager
 Veteran (in 30s)
 Major overall responsibility
 Nurture/grow brands and brand managers
 Brand Manager
 Up from Assistant (mid-20s)
 Responsible for one brand only
 “It’s your baby”
 Succeed or die
Horizontal Organization
 Example: McDonnell-Douglas (2 groups)
Chart:
Pg. 213
Jobs in Horizontal Organization
 VP of Program
 Must know the business
 Maturity/power/clout - 35+
Marketing Manager
 Marketing experience, not necessarily advertising
 Responsible for all advertising, PR, sales promotion, trade shows, etc.
 Advertising Manager
 May be “thrown into” role
 May have little ad experience
 Competition from other programs
Marketing Job Functions
 Category Manager
 Group Product Manager
Brand manager
Brand assistant
Other staff functions: Sales promotion, media, market research
Field Marketing
The Marketing Process
 Simply put, it’s...
 Planning
 Implementation
 Evaluation
Planning
1. Setting overall marketing strategy
2. Developing annual marketing plan
3. Calculating annual marketing budget
4. Assigning marketing tasks (planning)
Note: All of this is covered in more detail in Ch. 8 – Marketing and Planning
Implementation
4. Assigning marketing tasks (continued)
 After budgets approved, operations move from the theoretical to the practical
 NOTE: Actual costs may vary from budget - plans may need to be changed “on the
fly”
5. Supervising internal functions
 NOTE: PR may be internal, external or both
6. Overseeing external services
 Advertising, sales promotion, etc.
 NOTE: Variety of MarCom program options is growing
Evaluation:
7. Measuring and tracking efforts
 Sales Results
 Media Expenditures
 Awareness and Usage
 Ongoing Market Research programs (tracking studies)
8. Reporting performance to management
 NOTE: May be daily, weekly, or quarterly. Trend is for more frequent reporting
9. Integrating results into planning
 The cycle continues - working for improvement wherever possible
Questions & Discussion