Transcript BA635-2005
Current Marketing Issues Seminar BA635 Dr. Ed Forrest (Office) 786-4161 / (Cell) 854-8784 Email: [email protected] W3site: http://faculty.cbpp.uaa.alaska.edu/afef/ 2 First, buyers are no longer paying much attention. Several studies have confirmed that in the "buyer's decision journey," traditional marketing communications just aren't relevant. Second, CEOs have lost all patience. In a devastating 2011 study of 600 CEOs….77% have had it with all the talk about brand equity that can't 3be linked to actual firm equity or any other recognized financial metric. Tonight: • Address defining elements of course: • What is Marketing • What are the “Current Issues” • Organize / Select Research Topics/Teams …. 5 What is Marketing? 6 … Innate sense for marketing For 1,000’s of years… bartered & traded “branded” goods & services 7 “The Dawn of Marketing” Everybody’s a Marketer: Everybody promotes themselves…. Packages themselves ….. Everybody has their price…… 8 The Marketing Process: Strategic Planning Situation Analysis •Company •Consumers Marketing Strategy P’s The Marketing Mix: Growth & Competitive Product Place Strategies •Competitors Target Market Price Promotion G N •Conditions C Service TGT • PEST Positioning Strategy D E WM F 5th p =p2p Classic Functional Definition All activities performed in between: The Point of Production & The Point of Consumption st 1 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.” 12 •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 Definedas a Process- 1985 "The process of planning & executing the conception, pricing, promotion & distribution of ideas, goods & services to create exchange & satisfy individual & organizational objectives" The Latest Official AMA Definition (circa 2004) ..an organizational function & a set of processes creating, communicating & delivering value to customers for & for managing customer relationships in ways that benefit the organization & its stakeholders 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 customercentric -- not brand-centric" 18 The 1985 definition was not encompassing enough. The new definition more clearly infuses the customer into marketing." Management Reorientation Focus on Consumer – Not product Long –Term Relationships Not Shortterm Sales Marketing > Function =An Orientation “Marketing is… the whole business seen …. from the customers’ point of view.” “The aim of marketing is to know & understand the customer so well the product or service …sells itself.” ~ Peter F. Drucker “Marketing is too important to be left to the marketing department.” 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 Must Change Your focus & objectives: From: Average Consumer Customer Anonymity Standard Mktg. Mix Mass Production Mass Distribution Mass Advertising Mass Promotion One-Way Comm. Economies of Scale Share of Market All Customers Customer Attraction To: Individual Customer Customer Relationship Customized Market Offering Customized Production Individualized Distribution Individualized Message Individualized Incentives Interactive Communication Economies of Scope Share of Customer Profitable Customers Customer Retention Marketing Next StepID the issues… Ten Issues Marketers Should Have on Their 2012 Agenda | Special ... adage.com/article/special-report...issues-marketers-2012.../231502/Cached – Here are 10 issues for marketers in 2012 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 -On Any Syllabus, any Year or Day- One can find Issues of: As it is Product Quality Service Quality Consumer Confidence/Satisfaction Value/Pricing Practices Free/Fair trade Globalization Advertising (volume, veracity, political-correctness) What’s most relevantDepends on Your Perspective: MarketerIssues = factors that affect sales • ConsumerIssue = factors that affect one’s sensibilities Fact is--these & most issues… Are RE-CURRENT issuesthat Ebb & Flow w/ socioeconomic 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 Ergothe Real Question is…. Ergothe Real Question is…. Marketing’s “utility”/value derived from its Facilitation of Exchange! Willing to sell Temporal Utility Spatial Utility Transactional Utility Marketing Willing to buy 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 - part of Business & Business - part of Society Marketing Business 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-anticipateunderstand 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 Major Marketing Issues: 2012 #1: How do I measure the effect of social media marketing on my business? #3: What are the best ways to sell with social media? #2: How do I integrate and manage all of my social media marketing activities? #4: How do I improve customer engagement with social media? Online Ad Spend to Overtake TV by 2016 Social Media Not Only Issue: the keyword has changed… For anyone going into business these days The New keyword- Algorithm Requisite for today’s marketer: Apply Tools & Technologies that generate, capture, analyze & leverage DATA DATA Data mining New Mrktg Skill Sets Database marketing E-crm Automated online assistant Sales force management system Business intelligence Sales intelligence Enterprise Feedback Management (EFM) Business Relationship Management Sales process engineering Partner Relationship Management (PRM) Comparison of CRM systems Predictive analytics Consumer Relationship System Employee experience management (EEM) Professional services automation software (PSA) Support automation Supplier relationship management Customer Experience International Customer Service - Customer experience transformation Vendor Relationship Management Customer Intelligence • Lead Mgt • Sales Force Mgt Customer service - •Digital Asset Mgt Data management •Web Content Mgt •Marketing Resource Mgt •Marketing Operations Mgt • 6 decades into the computer revolution • 4 decades since the invention of the microprocessor • 2 decades into the rise of the modern Internet ----all the technology required to transform industries thru software finally works & can be widely delivered @ 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… Today: •The world's largest bookseller, Amazon •largest video service -Netflix •The dominant music companies Apple's iTunes, Spotify, Pandora •The fastest growing entertainment companies are videogame/software designers •The largest direct marketing platform— Google •The fastest growing telecom company is Skype •And Higher Education is being MOOCified by Coursera I Will Create Jobs I Will Fix the Economy Ultimately- Most Critical Competency = Ability to Act on Results of Analyses