Current Marketing Issues Seminar

1. Current Marketing Issues Seminar BA635Dr. Ed Forrest

2. E • Telephone: (Office) 786-4161 (Cell) 854-8784 • Email: afejf1@uaa.alaska.edu • W3site: http://faculty.cbpp.uaa.alaska.edu/afef/

3. Everything is Online

4. Tonight: Deconstruct the Title: • “Current Marketing Issues Seminar ”

5. What is Marketing?

6. Get people to buy things they don’t need… With money they don’t have… To impress people they don’t like.

7. Marketing’s Significance

8. Personnel Significance Marketing Impacts You - Everyday of Your Life • Everything you try, buy, vote for, drive, eat, wear– is “marketed” • Let alone- $.50 Cents of Every Dollar you spend goes to “marketing” costs

9. Economic Significance • The Economy-- JOBS- 1/4 -1/3of the Work-force perform marketing functions

10. Marketing Aligns Production & Consumption Production Sector Discrepancies of Quantity Separations: Marketing addresses discrepancies & separations in Space, Time & Ownership Discrepancies of Assortment Consumption Sector

11. Improves quality of life by/thru… providing variety of goods & services Significance of Marketing For example- What would life be like without the….

12. The Traveling Head Rest

13. Or the Traveling Head Holder

14. The Porto-Wipe

15. The Total-Surround Umbrella

16. Accu-Drop Glasses

17. And How About the “Butter-Marker”

18. Or The Attachable Noodle- Cooler

19. And last but not least—The Mr. Mom Baby Feeder!

20. Everybody is a Marketer: • Everybody promotesthemselves…. • Packages themselves ….. • Everybody has their price……

21. I think might be better "Ogar’s Fire" & Always been Marketers I’m calling it HOT • Innate sense of exchange • 1,000’s of years… bartered & traded “branded” goods & services “The Dawn of Marketing”

22. The Evolution of “Marketing” From a clearly defined “Function & Process” …to an “All Encompassing Philosophy”

23. Classic Functional Definition All activities performed in between: The Point of Production & The Point of Consumption

24. 1st Formal Definition ~1919 *Marketing and Merchandising by Ralph Butler & John Swinney, • Book distinguishes marketing from merchandising, • w/ marketing being something manufacturers do • & merchandising being the domain of jobbers; retailers. • Marketing defined as‘the manner in which the product is disposed of, the way in which it is distributed…, through various channels of trade.” 

25. Marketing Defined -1935 - “The performance of business activities that direct the flow of goods & services from producers to consumers.”

26. Marketing Defined-as a Process- 1985 "The process of planning & executing theconception, pricing, promotion & distributionofideas, goods & services tocreate exchange & satisfy individual & organizational objectives"

27. The Latest Official AMA Definition (circa 2004)

28. ..an organizational function & a set of processes • forcreating, communicating & delivering value to customers • & formanaging customer relationships in ways that benefit the organization & its stakeholders

29. Why the changed focus? What happened between 1985 & 2004 that made the AMA change the definition of marketing?

30. 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."

31. Management Reorientation:The Marketing Concept Focus on Consumer • Not product • Long –Term Relationships • Not Short-term Sales

32. Marketing > Function =An Orientation ” “Marketing is so basic that it cannot be considered a separate functionon a par w/others such as manufacturing or personnel…

33. 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.”

34. Marketing Process > Complex & All Encompassing

35. G N C Service TGT D E WM The Marketing Mix: F P’s Positioning Strategy Strategic Planning Situation Analysis Marketing Strategy • Company • Consumers • Competitors • Conditions • PEST Growth & CompetitiveStrategies

36. Marketing’s new definitionreflects 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

37. 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

38. Must Change Your focus & objectives: From: To: Average Consumer Individual Customer Customer Anonymity Customer Relationship Standard Mktg. Mix Customized Market Offering Mass Production Customized Production Mass Distribution Individualized Distribution Mass Advertising Individualized Message Mass Promotion Individualized Incentives One-Way Comm. Interactive Communication Economies of Scale Economies of Scope Share of Market Share of Customer All Customers Profitable Customers Customer Attraction Customer Retention

39. Changing Structure of Economy: From Product to Service based Share of Employment Agriculture Services Industry Time, per Capita Income

40. Waves of Change.. The Economist, 1996

41. In the olden days- … Marketing was defined “categorically” according to the “tangibility”of the entity you were selling: Pure service; no tangible good Major service with minor good Hybrid: equal part goods and service Tangible goods with some services Pure tangible good; no service Milk Computer & Warranty Meal atRestaurant Hair Styling LegalAdvice

42. Tangible Good w/ Services Hybrid Major Service w/ Goods Pure Tangible Good Pure Service Product - Service Spectrum Salt  Soft Drinks  Detergents  Automobiles  Cosmetics  Fast-food Outlets Intangible Dominant  Tangible Dominant   Fast-food Outlets  Advertising Agencies  Airlines  Investment Management  Consulting Teaching

43. Intangibility Services cannot be experienced before purchase Inseparability Services cannot be separated from their providers Perish-ability Services cannot be stored for later sale or use Variability Quality of services depends on who provides them & when, where, & how unlike products

44. Re: service marketing – for decades this has been the thinking- Separate Products from Services

45. Key Point- Product-service differentiation is result of industrial age-2nd wave thinking • Only have meaning from a manufacturing perspective… and • Suggest inappropriate marketing strategies

46. A shift in perspective Instead of focusing on product – service differences …Focus on consumer commonalities …in “consuming & evaluating” that which is purchased

47. Re- Variabilty: • Customizaton not standardization is the goal Re-Inseparability: • “Customer-ization” not isolation = goal Re-Perishability: • Services can be/are inventoried (ie-knowledge in databases & experts head) AND Inventory management not maximization is objective; Everything is perishable—if not in substance certainly in style… Re: Intangibility: • its not the product that people are buying. It’s the functions served & benefits rendered- as it is w/ services

48. Marketing Next Step- ID the issues…

49. 2008= 27 million in .12 sec