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-making products in Canada has been easy its marketing them that has become tough.

EMPLOYMENT & COSTS

-between 25 & 33 percent of Canadian labour force is engaged in marketing activities.

-on average 55 cents of every dollar consumer spends goes to cover marketing costs.

CREATING CUSTOMER VALUE

-the quality that makes a product capable of satisfying wants is its value or utility.

IN ORGANIZATIONS

-Marketing is the only activity that produces revenue directly.

-1997 stats Can report survey found that one in 5 small ventures will make it past 10 years.

(surveyed 3000 companies)

SERVICE MARKETERS

-service becoming more important then actual product

NOT-FOR-PROFIT MARKETERS

-Even charities are increasingly needing to market themselves, which has occurred because:

-Increasing competition among non-profit organizations

-firms need to improve image to get more funds.

SIX TYPES OF UTILITY

Form utility-associated primarily with production

Place utility-exists when a product is readily accessible to potential customers.

Time utility-means having a product available when you want it

Information utility-created by informing prospective buyers that a product exists

Possession utility-created when ownership is transferred to the buyer

Satisfaction utility-created when customer is pleased with product.

CHAPTER 2

THE CHANGING ENVIROMENT

ENVIROMENTAL MONITORING

Environmental monitoring- (environmental scanning) is the process of (1) gathering info regarding s company’s external environment (2) analyzing it & (3) forecasting the impact of the trends suggested by the analysis.

TWO LEVELS OF EXTERNAL FORCES

-macro influences-includes demographics, eco conditions, technological development, culture & laws.

-micro influences-consists of suppliers, marketing, intermedediaries, & customers.

EXTERNAL MACROENVIROMENT

-6 interrelated macroenvironmental forces have a considerable effect on any organizations marketing

system. Yet they are largely not controllable by management.

Company’s Marketing Program

A. Demography

B. Economic conditions

C. Competition]

D. Social & cultural forces

E. Technology

F. Political & legal forces

DEMOGRAPHY

Demography-is the statistical study of human population & its distribution.

-most significant is baby boomers (born between 1946-1966)

-people in BB segment now passing through middle years.

-baby boomers children also important demographic. (Generation X)

-today’s seniors another important segment as population is aging.

-David Foot breaks down to: young seniors (65-74), mid-seniors (75-84), &

senior seniors (85 & up)

-today 20% of Canadian households are made of people who live alone.

ECONOMIC CONDITIONS

-is a significant force that affects the marketing system of just about any organization.

STAGE OF THE BUSINESS CYCLE

-traditional cycle goes through 4 stages prosperity, recession, depression, & recovery.

-today depression is excluded because of its rarity in occurrence.

-Prosperity is typically is a period of economic growth.?companies tend to expand.

-in recessions less is spent by consumers because of economic hardship.

-in the recovery the economy moves from recession to prosperity.

INFLATION-is arise in price levels, causes decline in buying power.

INTEREST RATES-when interest rates high consumers refrain in buying expensive items.

UNEMPLOYMENT RATES-important figure, if people aren’t employed tougher to sell to.

COMPETITION

-executives should be gathering intelligence & otherwise be monitoring all aspects of their competitors

marketing activities.

-Firm faces competition from 3 sources

A. Direct brand competition & store competition from marketers of similar & directly

Competing products & services.

B. Substitute products that satisfy the same basic need.

C. Every company or organization is competing for the consumers limited buying power.

SOCIAL & CULTURAL FORCES

CHANGING VALUES-EMPHASIS ON QUALITY OF LIFE

-focus today is on quality of life not merely the quality of goods & services.

-education, health, environment more important.

-also immigrants have different values

-915,000 Chinese lived in Canada in 1996, expected to grow to 2.1 million by 2001.

ROLE OF MEN & WOMEN -male female stereotypes & roles slowly coming down

ATTITUDES TOWARD PHYSICAL FITNESS & EATING

-fish & chicken have gone up in consumption dramatically

EMPHASIS ON SERVICE QUALITY

-quality in service depends on expectations of customers.

CONCERN FOR THE ENVIROMENT

-using more biodegradable materials & recyclable products.

-as many as 50% of consumers in the future are expected to make purchases on the basis of

environmental factors.

DESIRE FOR CONVENIENCE

-want products ready & easy to use & convenient credit programs.

-want stores close by, open 24 hours.

-Growth of Internet

IMPULSE BUYING

impulse buying-purchasing done without much advance planning.

-partly because of attractive displays

TECHNOLOGY

Technology-has a tremendous impact on our lifestyles, consumption patterns, & economic well being.

-Internet will have big impact on marketing & business.

-with new technology come new problems. For example credit card security over net.

-in 1997, 8% or nearly 2 million Canadians accessed the Internet.

Major technological breakthroughs have a 3 fold impact on marketing:

-to start entirely new industries such as CD-ROM,

-To alter & virtually destroy existing industries.

-to stimulate other markets & industries not related to the new technology.

POLITICAL & LEGAL FORCES

-Influence from government policies.

A. General monetary & fiscal policies

B. Legislative framework & codes & policies set by government agencies.

C. Social Legislation seatbelts, no smoking

D. Government relationships with individual industries.

E. Legislation specifically related to marketing should know laws

F. The provision of info & the purchase of products.

EXTERNAL MICROENVIROMENT

-3 environmental forces that are external, but are a part of a company’s marketing

system, are that firm’s market, its suppliers, & its marketing intermediaries.

THE MARKET (see page 40, table 2-2)

-place where buyers & sellers meet, G & S are offered for sale, & transfer of ownership occurs.

-in mkt. Demand for any given product or service, there are 3 factors to consider:

A. people or organizations with wants (needs0

B. their purchasing power

C. the buying behaviour

SUPPLIERS

-critical to market success, that’s why suppliers part of marketing system.

MARKETING INTERMEDIARIES

-There are 2 types of intermediaries:

A. firms called middlemen or intermediaries-wholesalers & retailers

B. various organizations that provid4e such services as transportation, warehousing, & financing that are needed to complete exchanges.

ORGANIZATION”S INTERNAL ENVIROMENT

(SEE page 41, fig 2-3 & 2-4)

-organizations marketing system is also shaped by internal forces that are controllable

by management. These influences include firms production, financial & personal act.

CHAPTER 3

STRATEGIC MARKETING PLANNING

PLANNING AS PART OF MANAGEMENT

Management process, as applied to marketing, consists basically of (1) planning a marketing program, (2) implementing it & (3) evaluating its performance.

-planning stage includes setting goals & designing tactics to reach these goals

-the implementation stage entails forming & staffing the marketing organization according to the plan.

-the evaluation stage consists of analyzing past performance in relation to organizational goals.

-This third stage indicates the interrelated, continuing nature of the mgmt. Process.

-the results of this stage of the mgmt. Process are used in planning goals & strategies for future periods.

And the cycle continues

PLANNINGIMPLEMENTATIONEVALUATION

Analyze situationOrganizeCompare

Set goals ?Staff ?performance

Select strategies & tacticsOperatewith goals

Forecast demand FIG 3-1

Feedback plays role in first 2 stages.

THE NATURE OF PLANNING

-management first should decide what it intends to accomplish as a total organization & then develop a

strategic plan to achieve these results.

-on basis of this overall plan, each division of organization should determine what its own plans will be.

Planning-is deciding now what we are going to do later, including how & when we are going to do it.

Strategic planning-managers match an organization’s resources with its market opportunities over the long run.

Strategic window-was suggested to describe the limited amt. Of time in which a firm’s resources can actually be made available to take advantage of a opportunity.

-typically strategic window is only open temporarily, thus firm must move quickly.

KEY PLANNIONG CONCEPTS

MISSION (What business are we in?)

Mission-states what customers it serves, what needs it satisfies, & what types of product it offers.

-A mission statement indicates in general terms the boundaries of an organizations activities.

OBJECTIVES & GOALS (What do we want to accomplish?)

-book treats goals & objectives as synonyms,

Objective-is simply a desired outcome.

-effective planning must begin with a set of objectives.

To be worthwhile & workable objectives should be:

Clear & specific

Stated in writing

Ambitious, but realistic

Consistent with on another

Quantitatively measurable whenever possible

Tied to a particular time period

STRATEGIES & TACTICS (How are we going to get job done?)

Strategy-is a broad plan of action by which an organization intends to reach its objectives.

Tactic-is a means by which a strategy is implemented.

EXAMPLE

ObjectivesPossible Strategies

Increase sales next year by 8% over this years figure. 1) Intensify marketing efforts

Domestic markets.

2) Expand into foreign markets.

3) Increase customer retention by

reducing account closings by 10%

StrategyTactics

Direct our promotion to males aged 25-401) Advertise in magazines read by this group of peeps

2) Advertise on TV programs watched by these peeps

Increase revenue from existing customers3) Redesign the customer info system

4) Create a loyalty program for light & medium users

5) Retrain account analysts & service personnel.

SCOPE OF PLANNING

-strategic planning is usually long-range, coverage 3,5,10 or infrequently 25 years

-short-range planning typically covers 1 year or less

Planning at 3 different levels:

Strategic company planning: At this level, management defines an organizations mission, sets long-range goals, & formulates broad strategies to achieve these goals.

Strategic marketing planning: The top marketing execs set goals & strategies for an organizations marketing effort.

Annual marketing planning: Short-term plans should be prepared for a firms major functions. Based on strategic marketing plan.

STATEGIC COMPANY PLANNING

Consists of 4 essential steps:

1) Defining the organizational mission-influences all subsequent planning.

2) Analyzing the situation-

3) Setting organizational objectives

4) Selecting strategies to achieve these objectives.

Situational analysis-gathering & studying info pertaining to one or more specified aspects of an organization.

Organizational strategies-represents broad plans of action by which an organization intends to achieve its goals & fulfill its mission

STRATEGIC MARKETING PLANNING (SEE PAGE 51, FIG 3-2)

-strategic marketing planning is a 5 step process:

A. Conduct a situation analysis

B. Develop marketing objectives

C. Determine positioning & differential advantage.

D. Select target markets & measure market demand

E. Design a strategic marketing mix

SITUATION ANALYSIS

-involves analyzing the company’s marketing program has been, how it has been doing,

& what it’s likely to face in the years ahead.

-enables firm to know if to revise or devise plans.

-normally covers external environmental forces & internal non-marketing resources.

-SWOT assessment is part of the situational analysis that many organizations perform.

In this activity firm identifies & evaluates its most significant strengths, weaknesses,

Opportunities, & threats.

MARKETING OBJECTIVES

-each objective should be assigned a priority based on its urgency & potential impact

On the marketing area & in turn the organization.

POSITIONING & DIFFERNTIAL ADVANTAGE

-involves 2 complementary decisions: how to distinguish it from competitors.

Positioning-refers to a product’s image in relation to directly competitive products as well as other products marketed by the same company.



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