Marketing: Building Blueprints for Business

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MarketingBuilding Blueprintsfor Business
(Chapter 4)
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Marketers Advertisers

• Many different types of marketers
• Packaged goods

• Many different types of marketers

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Marketers Advertisers

• Many different types of marketers
• Packaged goods

• Durable Goods

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Marketers Advertisers

• Many different types of marketers
• Packaged goods

• Durable Goods

• Services

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Marketers Advertisers

• Many different types of marketers
• Packaged goods

• Durable Goods

• Services

• Retailers

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Marketers Advertisers

• Many different types of marketers
• Packaged goods

• Durable Goods

HP Maestro - Goodby Silverstein

• Services

• Retailers

• High Tech

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Marketers Advertisers

• Many different types of marketers
• Packaged goods

• Durable Goods

• Services

• Retailers

• High Tech

• And more

• But they all have similar methodologies and
  organizations.

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Marketers Advertisers

• Today well cover
• The Marketing Function - 5 Ps
• The Marketing Department
• Organizational Structure
• Types of Jobs
• The Marketing Process
• Challenges for the Future
• Questions Discussion

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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

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The Five Ps

• Five Critical Marketing Decisions
• Product
• Price
• Place (physical distribution)
• Promotion
• All types of promotional activities
• Advertising, Sales Promotion, PR, etc.
• The Fifth P
• People

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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

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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

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2. Price

• Here is an example of advertising that supports
  a price strategy

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3. Place

• Similar products can make different place
  decisions
• Example Coffee
• Folgers (retail)

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3. Place

• Similar products can make different place
  decisions
• Example Coffee
• Folgers
• Gevalia

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3. Place

• Similar products can make different place
  decisions
• Example Coffee
• Folgers
• Gevalia
• Starbucks

• A Critical Decision

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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

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5. People

• Some controversy over the Fifth P
• Once, some said packaging
• One consultant says personalization
• We say its People.
• Your customers
• Your own people
• Work force Sales force
• Other stakeholders
• Trade, Suppliers, Stockholders

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The Marketing Mix

• The right combinations of . . .
• Demand
• Example Price/Supply
• Marketing Variables
• Five P Variables
• Promotional Variables
• Marketing Strategy . . .

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Unique CombinationsUnique Marketing Strategies

• Example Early auto industry
• Ford - Product/Price

• GM - Product/Value

• GM - Multiple Brands
• Chrysler - Competitive
  Position

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Unique CombinationsUnique Marketing Strategies

• Example Early auto industry
• Ford - Product/Price

• GM - Product/Value

• GM - Multiple Brands

• Example Bose

• Promotion Place Direct instead of stores

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Marketing Departments
2 Types of Organization

• 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

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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 usually 35
• CFO, CIO
• Chief Financial Officer
• Chief Information Officer

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Vertical Organization

• Example Oscar Mayer (KGF) Consumer Products

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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
• Its your baby
• Succeed or die

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Horizontal Organization

• Example McDonnell-Douglas (2 groups)

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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

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Marketing Job Functions

• Director of Marketing
• Often, trained w. feeder system
• PG, KGF, etc.
• Has become COO career path
• Must manage increasing variety of MarCom
  programs and suppliers
• Advertising Director
• Importance depends on size of budget
• May also have significant responsibilities
  monitoring media spending

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Marketing Job Functions

• Category Manager
• Group Product Manager

• Brand Manager
• Brand Assistant
• Other Staff Functions
• Sales Promotion
• Media
• Market Research
• Field Marketing

Bridgette Heller - from Brand Manager Gevalia to
Category Manager for Coffee at KGF
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Field Marketing

• Excellent entry level job opportunity
• There are many marketers that operate Field
  Marketing Organizations
• Beverage Industry (Beer, Soft Drink)
• Fast Food Industry
• Franchise Organizations
• In many cases, ad agencies that service
  these marketers also provide Field Marketing
• Think Global. Act Local.

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The Marketing Process

• Simply put, its...
• Planning
• Implementation
• Evaluation

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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
Chapter 8 - Marketing Planning
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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

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Evaluation

• 7. Measuring and tracking efforts
• Sales Results
• Media Expenditures
• Awareness and Usage
• Ongoing Market Research programs (tracking)
• 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

NOTE Some of this is covered in more detail in
Chapter 11 Evaluation Integration
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Marketing Challenges

• Increasing importance of marketing
• As mentioned, Marketing is Everything the
  function is more important for everyone
• Hyper-Competition
• Too much capacity for size of market
• Happening on a global scale
• Examples Automobiles, computers
• Fragmentation
• Consumers, Media, etc.
• Harder to do mass marketing
• And of course

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Marketing Challenges

• The Media Revolution
• Changing Business Models
• Example Newspapers/Network TV
• Chan ging Consumer Habits
• Example Response to Economy
• Shift in Control of Media Channels
• Example Social Media

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Marketing Challenges

• The Media Revolution
• Changing Business Models
• Example Newspapers/Network TV
• Changing Consumer Habits
• Example Response to Economy
• Shift in Control of Media Channels
• Example Social Media
• New Communication Channels
• Example The Third Screen

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Marketing Challenges

• The future is sure to be challenging.
• But those challenges will be met with Marketing!
• Because today and tomorrow Marketing is
  Everything!

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Questions Discussion