Transcript BA635-2005 - University of Alaska system
Current Marketing Issues Seminar
BA635 Dr. Ed Forrest
E
Telephone: (Office) 786-4161 (Cell) 854-8784 Email: [email protected]
W3site :
http://faculty.cbpp.uaa.alaska.edu/afef/
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Tonight:
Discuss the Defining
Components of our Seminar:
“
Current Marketing Issues
”
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What is Marketing?
Everybody is a Marketer:
Everybody promotes themselves….
Packages themselves …..
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Everybody has their price ……
7 & Always been Marketers
Innate sense of exchange 1,000’s of years… bartered & traded “ branded ” goods & services
“ The Dawn of Marketing”
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The Evolution of “Marketing”
From
: Specific Function…
To
: General Orientation….
Classic Functional Definition All activities performed in between: The Point of Production & The Point of Consumption
1 st Formal Definition ~1919
*
Marketing and Merchandising by Ralph Butler & John Swinney ,
Marketing defined as
‘the manner in
which the product is disposed of, the way in which it is distributed…, through various channels of trade.”
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•Book distinguishes
marketing from merchandising,
•w/ marketing being
something manufacturers do
•& merchandising
being the domain of jobbers; retailers .
Marketing Defined
-
1935 “The performance of business activities that direct the flow of goods & services from producers to consumers.”
Marketing Defined-
as a Process- 1985 "The process executing
distribution
the of of planning &
conception, pricing, promotion &
ideas, goods & services to
create exchange
&
satisfy
individual & organizational
objectives
"
The Marketing Process:
• •
Situation Analysis C C
ompany onsumers •
C
ompetitors •
C
onditions •
PEST
Strategic Planning
Growth & Competitive Strategies Marketing Strategy P’s
The Marketing Mix:
E G N Service C TGT Positioning Strategy D WM F
The Latest Official AMA Definition
(circa 2004)
..
an organizational
function & a set of processes
for
creating, communicating &
delivering value to customers
& for
managing customer relationships
benefit the organization & its stakeholders in ways that
Why
the
changed focus?
What happened between 1985 & 2004 that made the AMA change the definition of marketing?
The AMA Rationale:
“Technology & marketing been changing quite rapidly over last five to 10 years…
Marketing should be customer centric -- not brand-centric"
The 1985 definition was not encompassing enough. The new definition more clearly infuses the customer into marketing."
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Management Reorientation Focus on Consumer – Not product Long –Term Relationships Not Short term Sales
Marketing’s new definition reflects a broadened focus --
Was focused on short term profitable transactions…
Now look at customers' lifetime value
Was focused on capturing new customers ….
Now focus on keeping existing customers
Was focused on mass- media advertising......
Now use integrated strategy w/ all points of contact Was segmented on geo/demographic variables
Now use all relevant variables, especially behavioral variables -- usage rate & loyalty Performance was measured by financial metrics…
Now also measured strategic & customer-satisfaction metrics
Marketing > Function =An Orientation
“Marketing is…
…the whole business seen from the point of view of its final result, from the customers’ point of view.”
Changed focus--resulted in restructuring:
Company was organized by product units.....
Now organized by customer segment
The marketing department did the marketing …
Now everyone does some marketing
Company was the unit of analysis.........
Now whole value chain is unit of analysis
Had individual / hierarchical work structures…
Now cross functional teams
Marketing
Next Step ID the issues…
Ramkhamhaeng University Institute for International Studies GB 635 Current Issues in Marketing Course Outline
London Metropolitan University MK3P04 Current Issues in Marketing Syllabus
Developing criteria to evaluate marketing plans against selected issues.
Creating appropriate research methods to investigate issues.
Ethics and the practise of marketing Sample issues: Green Marketing Consumerism Use of I.T. in marketing Brand Valuation Stereotyping in advertising
Marketing Issues- as delineated by 1999 UAA Syllabus …
Marketing performance
The Creation of Customer Satisfaction & Value Buyer Behavior
Relationship Marketing
Inter-firm Relationships in Marketing Services Marketing & Service Quality Competition & Strategy
Marketing and Information Technology Marketing Globally
Ethics and Legal Issues in Marketing
As it is On Any Syllabus, any Year or Day- One can find Issues of :
Product Quality
Service Quality
Consumer Confidence/Satisfaction
Value/Pricing Practices
Free/Fair trade
Globalization
Advertising (volume, veracity, political-correctness )
What’s most relevant -
Depends on Your Perspective:
Marketer
Issues = factors that affect sales
• Consumer
Issue = factors that affect one’s sensibilities
Fact is- these & most issues…
Are
RE-CURRENT
issues that Ebb & Flow w/ socio economic events
We could- examine all these issues 1 by 1…
Quite taxing & Just too Superficial
“ Yes… you seem to be suffering from a marketing issue ”
Examining only symptoms --not diagnosing the cause
Ergo the Real
Question is….
Ergo the Real
Question is….
Marketing’s “utility”/value derived from its Facilitation of Exchange!
Willing to sell Temporal Utility Spatial Utility Transactional Utility Willing to buy Marketing
Key Point: Keep Marketing in Perspective Anything/Everything one does to facilitate exchange Whatever impacts Why- What- Where- When- How Exchange occurs… is (or becomes) an Issue…
Marketing Issues in Perspective Marketing & Business part of part of Business Society Business Marketing Society “Societal Change” creates “issues” for Business … which creates “issues” for Marketing
Thus- in order to
identify- anticipate- understand Marketing Issues in particular
One needs to
identify-anticipate understand Societal Change in general
Society Defined: A group of humans broadly distinguished by:
mutual interests
,
participation in characteristic
relationships
,
shared
institutions
, &
a common
culture
In the final analysis marketing strategy is formulated to address… THUS Patterns of/changes to: human interests, relationships, institutions & culture… … become marketing issues Hence- our search for marketing issues begins w/ examination of…
& what better time to study Societal Change
…We are living thru one of the great periods of societal change in the history of humankind…
We’re in midst - next great Paradigm Shift… …
in the way we
live, communicate, work, produce & consume …
An entirely new & increasingly complex ecosystem has emerged, which impacts the way people connect, engage, influence, --& are influenced.
Social Media Revolution Socialnomics
Online Ad Spend to Overtake TV by 2016 FORBES: Tech | 8/26/2011
Major Marketing Issues: 2012
#1: How do I measure the effect of social media marketing on my business?
#2 : How do I integrate and manage all of my social media marketing activities?
#3 : What are the best ways to sell with social media?
#4 : How do I improve customer engagement with social media?
Major Marketing Issues: 2012
#5 : How do I master the use of specific social media platforms?
#7 : What are the best practices in social media marketing?
#6 : How do I effectively find my target audience with social media?
#8 : How do I use social media in niche markets?
the keyword has changed … For anyone going into business these days
The New word is
Algorithm
Algorithms derived via “Analytics”
...the process of obtaining an optimal or realistic decision based on existing data.
New Marketing Mgt. Tools & Technologies all about capturing, generating, analyzing, leveraging DATA DATA 08/20/11 Why Software Is Eating the World
•
Six decades into the computer revolution
•
four decades since the invention of the microprocesso r
•
two decades into the rise of the modern Internet ----all of the technology required to
transform industries through software finally works and can be widely delivered at global scale
In 2000..the cost of a customer running a basic Internet application was ~$150,000 a month. …same application today in Amazon's cloud costs ~$1,500 a month…
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Today, the world's largest bookseller , Amazon, is a software company
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Today's largest video service by number of subscribers is a software company: Netflix
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Today's dominant music companies are software companies, too: Apple's iTunes, Spotify , Pandora
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Today's fastest growing entertainment companies are videogame makers
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Photography, of course , was eaten by software long ago.
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Today's largest direct marketing platform is a software company — Google
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Today's fastest growing telecom company is Skype, a software company
Data mining Database marketing E-crm Employee experience management (EEM) Enterprise Feedback Management (EFM) Partner Relationship Management (PRM) Predictive analytics Professional services automation software (PSA)
•
Lead Mgt
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Sales Force Mgt New Mrktg Skill Sets Automated online assistant Business intelligence Business Relationship Management Comparison of CRM systems Consumer Relationship System Customer Experience Customer experience transformation Customer Intelligence Customer service contains ISO standards Data management Sales force management system Sales intelligence Sales process engineering Support automation Supplier relationship management International Customer Service Vendor Relationship Management or VRM
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Digital Asset Mgt
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Web Content Mgt
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Marketing Resource Mgt
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Marketing Operations Mgt
Competencies Needed by Todays Marketers… Traditional Skills
Sales mgt
Advertising mgt
Sales promotion mgt
Marketing research
Pricing PLUS:
CRM Customer relationship management ) PRM Partner relationship management MRM mining Marketing Resource Mgt.: Database Mgt & Data-
Lifetime Profitability analysis by segment, customer, channel IMC Integrated marketing communications; Public relations marketing) (including event & cause sponsorship, buzz